Illicit trade poses a threat to India’s path to a $5 trillion economy
Illicit trade, a multi-billion-dollar industry with severe economic, social, and environmental impacts, has been on the rise, particularly during economic downturns. Its effects are particularly detrimental to developing economies.
Speaking at the 9th edition of FICCI CASCADE’s ‘MASCRADE 2023,’ Anurag Thakur, Minister for Information & Broadcasting and Youth Affairs & Sports, Government of India stressed that addressing the connection between illicit trade, organized crime, and terrorism is essential for safeguarding the economy and contributing to a safer and more peaceful world.
He emphasized that the rise in illicit trade, a consequence of globalization, is casting a shadow on India’s journey towards achieving a $5 trillion economy. He highlighted that illicit trade, encompassing activities such as smuggling, counterfeiting, and tax evasion, imposes a significant socio-economic burden. It not only impedes progress but also increases expenses, making vital economic goals more elusive.
Highlighting the government’s initiatives, he mentioned, “We have enacted laws aligning with our international commitments and demonstrating a progressive outlook. However, given the complex and alarming expansion of illicit trade, it underscores the need for enhanced intergovernmental collaborations and public-private partnerships to formulate a comprehensive strategy.”
As India ascends as a formidable global economic force, safeguarding businesses’ rights through robust regulations and vigilant enforcement becomes increasingly intertwined with the nation’s growing global influence. Thakur added, “The interconnectedness of illicit trade, organized crime, and terrorism poses a clear and present danger to global security, necessitating a resolute response. Combating the social and economic detriments inflicted by illicit trade stands as an imperative, reflecting India’s steadfast commitment to preserving its hard-earned economic strength and securing a prosperous future.”
Anil Rajput, Chairman of FICCI CASCADE, emphasized that illicit trade has broader consequences beyond fiscal losses. It compromises national safety and security due to its links with organized crime networks and terror financing. Acknowledging India’s status as a global powerhouse with a dynamic consumption environment, Rajput emphasized the importance of concerted efforts to ensure that illicit trade does not hinder growth. He stressed the role of public awareness in consuming only legal products and the need for a robust mass awareness strategy.
Anil Sinha, Former Director of the Central Bureau of Investigation (CBI) and Think Tank Member of FICCI CASCADE, also highlighted the impact of illicit trade and called for collaborative efforts to combat this menace.
Justice KV Viswanathan, Judge of the Supreme Court of India, suggested tax measures for genuine products to discourage counterfeiting. He emphasized the importance of all stakeholders coming together to tackle the issue, with the judiciary playing a pivotal role among them.
