21^th June 2023| Taj Lakefront, Bhopal

In the past ten years the magnitude of illicit trade has grown from USD 650 billion to about USD 3 trillion, representing 10 per cent of the global trade and rightly been termed as the crime of the 21 st century by the FBI. Hence its existence and operation are broad in scope and large in value impacting not only the global economy causing losses to both industry and government, but also adversely affecting consumer health and safety. 

In an effort, to underscore the detrimental effects of counterfeiting and smuggling on the economy and propose collective actions to combat this problem, FICCI CASCADE organized a seminar titled “Preventive Strategies to Combat Counterfeiting and Smuggling” on June 21, 2023, in Bhopal. Throughout the day-long programme, esteemed experts shed light on different aspects of counterfeiting and smuggling, sharing insights and perspectives on effective measures to mitigate these issues. 

Dr. Navneet Mohan Kothari, Managing Director, MP Industrial Development Corporation, Bhopal was the chief guest at the seminar. Dr. Kothari opined that in the past the society hasglamorized smuggling, with some individuals avoiding tax payments and utilizing smuggled money for illicit purposes. Smuggling not only inflicts considerable financial harm on government revenues but also undermines the stability of the economy. It is imperative to foster awareness about the inherent perils and risks connected with smuggling, he emphasized.

Dr. Kothari stated that counterfeiting poses a deeper problem, particularly in the realm of mass consumer products like FMCG where an alarming 25-30 per cent of goods are found to be counterfeit. The money derived from smuggling is employed for illicit and nefarious purposes. The prevalence of packaged products has made counterfeiting easier, allowing counterfeiters to evade quality standards. Smuggling also serve as a source of financial support for activities that are detrimental to national interests.

Mr. Mahesh Kumar Yadav, Senior Deputy Commissioner, Central GST and Central Excise highlighted that crimes relating to smuggling and counterfeiting have increased manifold in global market as a result of which the government, businesses, society and consumers are losing millions of rupees. Smugglers are opportunistic who aims to exploit market to gain economic advantages, added Mr. Yadav.

Mr. Shiyas A., DIG(I), CID, PHQ, Bhopal talked on the clandestine nature of smuggling operations which allows perpetrators to evade taxes, tariffs, and customs duties, resulting in substantial revenue losses for governments. Smuggling inflicts economic losses, and there is a deficiency in adequate penal provisions to address the issue effectively. Speaking on the topic ‘Outlining the landscape of illicit trade practices – Analysis & Implications’, Mr. PC Jha, Advisor, FICCI CASCADE and Former Chairman, Central Board of Indirect Taxes and
Customs (CBIC) accentuated that the illicit trade has wide-ranging consequences on the
economy, environment, as well as public health and safety. Presently, India is experiencing a troubling upswing in this unlawful yet highly profitable activity, largely due to the minimal risks involved. The market is being flooded with counterfeit and smuggled products, which is causing a disastrous impact on India’s economic advancement.

Mr. Deep Chand, Advisor, FICCI CASCADE and Former Special Commissioner of Police, New Delhi mentioned that the Madhya Pradesh government and enforcement agencies have made commendable strides in tackling the menace of illicit trade. Through their methodical approach and vigilance, they have successfully confiscated a substantial quantity of illegal cigarettes, liquor, synthetic milk, counterfeit currency, and various other illicit products. Their dedicated efforts instil hope that they will persist in their relentless pursuit to curb the expansion of illicit trade and lend their unwavering support to our ongoing fight against it.

The other eminent panellists who shared their valuable insights and perspective on the subject included Mr. Kunal Giani, Convener, FICCI MP Panel on Trade Promotion and MD, Sarvafoam; Dr. P.C. Kothari, President District Bar Association Bhopal; Mr. Rajeev Agrawal, Convener FICCI MP Panel on MSME and Ms. Giribala Singh, President District Consumer Disputes Redressal Commission.

During the discussion, Mr. Kunal Giani, Convener, FICCI MP Panel on Trade Promotion and MD, Sarvafoam shared his encounters with the repercussions of illicit trade, particularly regarding the misdeclaration of products. He emphasized that consumers can significantly reduce illicit trade by demanding a bill for every purchase, as approximately 80% of such activities can be curbed through this simple act. When a shopkeeper hesitates or refuses to issue a bill, it should serve as a clear warning signal, added Mr. Giani.

Dr. P.C. Kothari, President District Bar Association Bhopal, expressed his perspectives on the legal aspects concerning smuggling and counterfeiting. He shed light on the significance of robust laws to effectively combat these illicit activities. Mr. Rajeev Agrawal, Convener FICCI MP Panel on MSME, highlighted the significance of youth engagement in the fight against illicit trade, a pervasive threat that jeopardizes our economy and nation. He emphasized that this unlawful activity poses substantial risks to businesses, brands, government institutions, consumers, and to the overall welfare of the nation.

Ms. Giribala Singh, President District Consumer Disputes Redressal Commission urged consumers to proactively come forward and bravely confront the detrimental consequences of smuggling and counterfeiting.

The seminar saw a gathering of over 150 industry captains, consumer forum representatives, government officials, and various stakeholders from across sectors.

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NOTE : Presidium is not required for the above programmes.