December 31, 2023 | Twitter
On December 31, 2023, FICCI CASCADE hosted a Twitter Space session featuring Mr. Najib Shah, Former Chairman, CBIC and member of the FICCI CASCADE Think Tank. The session delved deeply into the pressing issue of “Economic Consequences of Illicit Trade on Legitimate Businesses, Government, and Society at Large.”
Mr. Najib Shah, leveraging his profound expertise and experience, provided a nuanced and insightful analysis of the pervasive global issue of illicit trade. He elucidated on its current prevalence and impact across diverse sectors and industries, highlighting those most profoundly affected. Moreover, Mr. Shah explored the intricate evolution of illicit trade dynamics in light of advancing technologies, offering valuable perspectives on how these advancements have reshaped the landscape of global trade practices.
The session not only underscored the gravity of illicit trade’s ramifications but also served as a platform for informed discourse aimed at fostering awareness and strategizing effective measures to mitigate its adverse effects on economies and societies worldwide.
He stressed on the profound impact of illicit trade on national economies, tax revenues, and legitimate businesses. Illicit trade diverts resources away from legal economic activities, bolstering the shadow economy and undermining overall productivity. This market distortion introduces inefficiencies and undermines investor confidence, thereby stalling economic advancement. Additionally, it tarnishes countries’ international reputations, potentially deterring foreign investment. Governments suffer revenue losses, limiting their capacity to deliver vital services and potentially necessitating increased taxes on lawful entities.
Legitimate businesses face unfair competition as counterfeit products flood markets, eroding consumer trust and creating financial strains, he added. Rising compliance costs exacerbate competitiveness challenges, while supply chain disruptions threaten business sustainability across diverse sectors. These factors collectively underscore the urgent need for coordinated efforts to combat illicit trade and its detrimental effects on global economies and businesses.
In conclusion, Mr. Shah emphasized that addressing illicit trade globally requires a holistic strategy emphasizing cooperation among governments, international bodies, law enforcement, and businesses. This approach includes bolstering international collaboration through intelligence sharing, adopting advanced border control technologies, and implementing stringent legislative measures against illicit trade. Moreover, efforts should prioritize capacity building for enforcement agencies and promote public-private partnerships to enhance supply chain security and raise public awareness.
Furthermore, the session facilitated a productive discussion where participants exchanged insights and tactics aimed at reducing illicit trade and safeguarding global socio-economic welfare. The online gathering drew enthusiastic participation from a global audience, with attendance exceeding 11,000 attendees.
