ILLICIT TRADE IN INDIA ON THE RISE: STUDY

New Delhi, Oct. 16: India continues to see rise in illicit trade in tobacco, FMCG, auto components, alcoholic beverages and computer hardware, says a report by Ficci and KPMG.

It said the smuggling in India takes place in forms such as mis-declaration, undervaluation, misuse of the end-use and other means.

The seizure value for mis-declaration of goods stood at `1,187 crore in 2016, while that of undervaluation of goods stood at `254 crore, it added.

The seizure value from misuse of end use was at `770 crore and that from other means was at `2,780 crore, seeing a rise of 191 per cent, from `953 crore in 2015, it said. “This suggests evolution of means of smuggling in India with the evolution of government policies to deal with smuggling,” the report said.

Ficci secretary general Sanjaya Baru said, “Due to the complexity and alarming growth of the illicit trade, more intergovernmental efforts and public-private alliances are needed to identify approaches leading to the development of a holistic strategy.”

The industries plagued by illicit trade, counterfeiting and piracy include tobacco, alcoholic beverages, computer hardware, auto components, FMCG, packaged food items and mobile phones, the report said.

Based on data of seizures, the market of illicit cigarettes trade in India rose by `5,775 crore between 2010 and 2015, making it worth `25,000 crore.