Make-in-India campaign faces smuggling threat

Industry chamber Ficci on Tuesday said that widespread smuggling, counterfeiting and piracy can affect India’s goal of becoming a manufacturing hub of the world.

It said that market for contraband, smuggled and counterfeit goods is thriving in India and is today one of the biggest challenges faced by Indian industry.

“India today has the potential to become a global manufacturing hub. However, widespread smuggling, counterfeiting and piracy, can act as a dampener in achieving this goal,” said Ficci.

It said a study reveals that the supply of illicit goods have increased by 44.4 per cent in just two years (between 2012 and 2014) in sectors such as tobacco, alcoholic beverages, auto components, computer hardware, FMCG packaged goods, FMCG personal goods and mobile phones.

“The genuine goods collectively suffered an annual sales loss of `32,412 crore, while the government’s loss in tax revenue went up by `13,049 crore,” said Ficci.

It said according to estimates by the Directorate of Revenue Intelligence (DRI), the extent of smuggling in India is maximum for cigarettes, gold, machinery parts, electronic items along with fabric and silk yarn.

“Illicit trade in terms of counterfeiting, smuggling and piracy are highly pervasive across countries and sectors, representing a multi-billion-dollar industry that continues to grow and impact commerce and industry, governments, economies and the society at large. There is also no doubt that the illegal money generated through illicit trade is a major source to finance dangerous activities such as terrorism, insurgency and other organised crimes,” it said.

Ficci is organising a two-day event — ‘Mascrade 2017 — Movement Against Smuggling and Counterfeit Trade’ from October 12. International institutions including World Customs Organisation, Interpol, United Nations Office for Drugs and Crime, Organisation for Economic Corporation and Development and US Homeland Security will represent at this event.

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