58 thousand crore loss to the government due to fake, 16 lakh jobs also affected

Illegal business i.e. smuggling and infiltration of counterfeit goods remains a challenge for the economy of the country and the world. Despite all the efforts, this caravan keeps on increasing. The economy of the country is also affected due to the growth of this car. Not only this, Karstan affects the growth rate, increases unemployment and also slows down activities like manufacturing. FICCI Cascade claims that as per international estimates, there has been an increase in smuggling and infiltration of counterfeit goods during Corona, affecting supply chains, changing consumption patterns and other problems.

impediment to the growth of the economy

PC Jha, advisor to FICCI CASCADE and former chairman of CBIC, said it is difficult for the government to achieve its goal of taking the economy to new heights without curbing illegal trade. For this, the government should work block-wise to stop the business of counterfeit goods and smuggling. And the section which has the most trafficking should be dealt with first.

illegal business of 2.5 lakh crores

For India, 5 sectors are most affected by smuggling and infiltration of counterfeit goods. As per the claims of FICCI Cascade, this includes mobile phones, household and personal use FMCG products, packaged FMCG products, tobacco products and alcoholic beverages. In these five sectors, about Rs. Illegal business of 2.60 lakh crore is estimated. FMCG also has about 75 per cent participation in this illegal business.

Strict punishment required

Najeeb Shah, former chairman of CBIC and member of FICCI Cascade think tank, believes that this problem can be overcome by consolidating the domestic manufacturing sector with the supply and demand of commodities. Along with this, it can be stopped by making consumers aware, strengthening the police system, provision of strict punishment, better use of technology, mutual and international coordination of agencies.

Illegal business snatched away 16 lakh employment opportunities

To understand why curbing illegal trade is so important, let’s take a look at some statistics: About 1.6 million jobs have been lost in India due to counterfeit and smuggled goods. In the FMCG industry alone, 68 per cent of the jobs have been lost.

 

The government has suffered a loss of more than 58 thousand crores in tax due to counterfeit goods and smuggling, out of which tobacco and alcohol alone account for 49 percent of the tax loss to the government. FICCI CASCADE Chairman Anil Rajput says that if this illegal business is controlled then it will prove beneficial for the country’s economy. This will accelerate the realization of the dream of a 5 trillion dollar economy. This will give an opportunity to India’s domestic manufacturing industry to increase production and provide more employment opportunities.