New Delhi, September 23
The crimes of smuggling and counterfeiting have marred the Indian economy as well as the citizens who are struggling to identify real from fake in this fast digitization and online trading. More than half the citizens have not only become prey to counterfeiting but the presence of counterfeit or fake products, the illicit trade has only grow higher.
Products from apparels to cosmetics, shoes to watches, mobile phones to tablets, cigarettes to liquor, jewellery to home appliances and even medicines and pet care products, you name it and the markets offers you counterfeit products.
Illicit trade in terms of smuggling and counterfeiting make up vast ‘global businesses’, representing a multi billion-dollar illegal industry that creates a significant drain on the world economy. It negatively impacts legitimate economic activity and facilitates an underground economy and organized crime that deprives governments of revenues for vital public services, forces higher burdens on taxpayers, dislocates hundreds of thousands of legitimate jobs and exposes consumers to dangerous and ineffective products.
Various goods are smuggled through land and water borders in the country and various nefarious attempts of smuggling have been caught by our Central Armed Police Force (CAPF) at the borders, airports and sea.
Border Security Force (BSF) is at the forefront of countering gold smuggling with its South Frontier at the Indo Bangladesh border. From smuggling of gold to Yaba tablets, BSF has has been a force behind breaking the back of smugglers using the Bangladesh route to illegally smuggle to and from India.
Similarly, Central Industrial Security Force (CISF) has been seizing medicines, gold and other valuable products from the airports in the country where smugglers have been caught trying to rope in the air route for smuggling. Multiple cases of such seizures were reported from the airports in the country specially the Delhi Indira Gandhi International Airport.
The customs and DRI (Directorate of Revenue Intelligence) have seized 847 kg of gold worth Rs 544 crore at various airports in the three months of the current fiscal till June.
In a reply in Rajya Sabha, Finance Minister Nirmala Sitharaman gave details of gold seizure cases at airports and seaports by Customs field formations and Directorate of Revenue Intelligence (DRI) from FY 2021-22 to FY 2024-25. In FY25, up to June 2024, 847.43 kg of gold was seized in 1,282 cases. The value of seized gold is Rs 543.61 crore.
In the 2023-24 fiscal, there were 5,962 cases of seizure at airports with 3,714 kg of gold worth Rs 2,081 crore getting seized.
On an average, DRI records at least 15 to 20 cases of gold, fake I Phones, cigarettes, narcotics seizures in one month as per it's records in 2024. Thre has been at least a 74% hike in gold seizures case in an year by DRI.
FICCI CASCADE Chairman, Anil Rajput said, "Illicit trade is the world’s largest growing industry, and its size is estimated to range between $650 million to $3 trillion according to multiple studies. This evil business represents 10% of global trade and has been termed as the crime of the 21st century by the Federal Bureau of Investigation (FBI)".
He added, "Smuggling and illicit trade are complex global threats undermining society, harming legitimate economies, and reducing government revenues. Apart from this, these operations now use advanced technologies and global supply chains to evade detection, funding criminal enterprises and terrorist organizations, and compromising national security".
While the police force is working on the organised syndicate of smugglers and counterfeit manufacturers, CASCADE (Committee Against Smuggling and Counterfeiting Activities Destroying the Economy)- a body from prestigious organization FICCI has been fighting against this crime alongwith the Indian Police Force and central police agencies.
CASCADE has a unique approach of building an inclusive platform by involving various forces to brainstorm, discuss, introducing awareness campaigns, using social media and organizing citizen centric events by including even the school children to educate them.
FICCI CASCADE was established on 18th January 2011. CASCADE focuses on highlighting the hazards of counterfeiting and smuggling because it works closely with industry, consumers, media, legal experts, consumer organizations, enforcement agencies and policy makers to create awareness on how smuggling and counterfeiting have become a serious menace to public health and safety, and why all concerned must make a concerted effort to contain this menace.
Over the years has been successful in stirring an active debate on the topic nationally and internationally. Various engagement programs and activities organized by CASCADE are well attended by industry across sectors, consumer rights activists, youth, government officials, the judiciary, police, customs and border enforcement officials, and have received wide public appreciation and media coverage.
Kashifa Hasan, Deputy Director, FICCI CASCADE said, "We organize various awareness programmes and initiatives across the nation to fight the hazards of counterfeiting and smuggling. These awareness programs were well attended comprising industry (retailers, distributors and manufacturers) across sectors, consumer rights activists, youth, police and custom officials".
CASCADE holds an annual event 'MASCRADE' discussing the illicit trade, its impact on economy and combating measures. This year MASCRADE is aimed to discuss on building resilient economies and building global initiatives against smuggling and counterfeiting.
Asper a report of CASCADE, illicit markets in five key industries – FMCG-packaged food, FMCG- household & personal goods, mobile phones, alcoholic beverages, and tobacco products, has increased from ₹ 2.49 lakh crores in 2018-19 to ₹ 2.60 lakh crores for the year 2019-20. The study on 'Invisible Enemy:
Impact of Smuggling on Indian Economy and Employment ’released in 2019 was a pioneering effort in India, which quantitatively estimates both revenue and livelihood opportunity lost due to smuggling in five specific industries.
According to the study the total direct livelihood opportunity lost in Textiles, Tobacco Products (Cigarettes), Readymade Garments, Capital Goods (Machinery and Parts) and Consumer (Electronics) Durables is about 5.01 lakh in 2017-18. This further leads to a total livelihood opportunity loss in the economy of about 16.36 lakh in 2017-18 due to backward linkage and multiplier effects of these five industries
An integral part of FICCI CASCADE is to conduct multi-stakeholder dialogues focused on identifying opportunities for joint action between governments, enforcement agencies, international institutions and the private sector to combat illicit trade.
CASCADE had organized 8 editions of its flagship international conference. The objective is to bring together and encourage deliberations between the stakeholders on the alarming magnitude of unfair trade practices such as counterfeiting and smuggling, and to spread awareness about its adverse socio-economic impact.
In some of their key events last year, CASCADE organised “Zero Evasion – Role of Youth in Making India Free from Smuggling & Counterfeiting” in August. This inter-school competitions will feature students from Delhi and NCR had and Elocution Competition, Poster-Making Competition and Jingle Writing Competition to inspire children to fight against illicit trade.
FICCI CASCADE values the impact that young minds can make in our awareness campaigns and recognizes their potential to drive meaningful change. Illicit trade undermines economic stability and public safety by bypassing legal regulations, resulting in financial losses and health risks. It also fuels criminal activities and erodes consumer trust, posing a significant threat to societal well-being.
In line with our efforts to generate large-scale awareness, FICCI CASCADE is organizing an Auto Rally to serve as a platform to engage with the community and educate them about the harmful impacts of illicit trade.
With the objective of building a robust international campaign against the menace of smuggling, FICCI CASCADE in 2022 took the lead and launched Anti-Smuggling Day on 11 February. Anti-Smuggling Day is observed to raise awareness and promote multinational cooperation to address the causes and consequences of smuggling.
FICCI CASCADE organized a seminar on “Combatting Illicit Trade: Insights, Challenges, and Solutions in Bengaluru in July. The seminar dealt in critical aspects of collaborative efforts against smuggling, emphasizing broader implications for national development and security.
In response, FICCI CASCADE organized a seminar on June 20, 2024, titled “Global Challenges of Illicit Trade and the Way Forward,” to address these issues and foster collaboration against this universal threat. With extensive participation from government bodies, industry leaders, law enforcement agencies, and civil society, the seminar facilitated a comprehensive discussion. While various perspectives were shared, the primary focus remained on formulating effective strategies to combat this growing menace.
CASCADE also organizes Twitter Space sessions regularly where senior officer from police department share their expertise and discuss solutions to illicit trader.
CASCADE held a Twitter Space session in March featuring Rajiv Ranjan Verma, former Director General of Railway Protection Force, BPR&D, National Crime Record Bureau, and Civil Defense, Home Guards, and Fire Services. The session focused on ‘Addressing Challenges: Combating Illicit Trade and Terror Funding.
Verma provided insightful perspectives on the significant challenges law enforcement agencies face in combating illegal trade and its connection to funding terrorism, highlighting the complexities posed by sophisticated smuggling networks and evolving financial transaction methods.
Similarly, a X (Twitter) Space was organized with Suvashis Choudhary, Former Joint Commissioner of Police, Chief Security Commissioner, Delhi Metro Rail Corporation and Think Tank Member, FICCI CASCADE on the “Need for a consumer voice to combat Illicit Trade” on Thursday, 16th May 2024.
Choudhary, provided valuable insights into the global landscape of illicit trade, emphasizing the impact of advancing technologies such as cryptocurrency, cyber threats, and artificial intelligence (AI), alongside public awareness campaigns and collaborative initiatives to curb illicit activities.
Another Twitter Space programme was held with Deep Chand, Former Special Commissioner, Delhi Police and Advisor, FICCI CASCADE on “Cracking Down on Smuggling” on Wednesday, 28 th February 2024.
CASCADE also works on capacity building of police officials. In one such programme, they held a workshop ‘Enhancing Measures Against Counterfeiting and Smuggling’ at the Delhi Police Academy, Jharoda Kalan, specifically designed for the police officers of Delhi and Goa.
The workshop saw enthusiastic participation, with more than 450 officers from Delhi and Goa police. CASCADE's movement has seen immense success in leaving an impact on the government and police force to together work on the issue of illicit trade and importantly introduce measures for countering counterfeiting and smuggling.
