The FICCI Committee Against Smuggling and Counterfeiting Destroying the Economy (CASCADE) has urged the government to launch a robust international campaign against the menace of smuggling.
It said that the magnitude of smuggling and the consequent loss to the country’s economy might become a roadblock in India’s march towards a $40 trillion economy under the Government’s vision of Amrit Kaal, FICCI CASCADE said in a statement.
While last year FICCI CASCADE took the initiative to mark February 11th as Anti-Smuggling Day, the body is now appealing to the government to highlight the issue of smuggling on the world stage and work with the United Nations to declare this as an ‘International Anti-Smuggling Day’.
The significance of the need for a high-impact international campaign against smuggling can be understood in the context of the massive loss that smuggling inflicts on the Indian economy, it added.
As per a 2022 FICCI CASCADE’s study titled – ‘Illicit Markets: A Threat to Our National Interests’, over a period of 10 years, the tax loss to the Government of India because of the illicit trade has jumped by 163% to reach a mammoth Rs 58,521 crore (from Rs. 22,230 crore) for 5 key industries – Alcoholic Beverages, Mobile Phones, FMCG-Household and Personal Goods, FMCG-Packaged Foods and Tobacco Products.
The report added that in the same period tax loss because of the illicit trading in two highly regulated and taxed industries – alcohol and tobacco products has jumped by 227%.
In the FMCG category, Packaged Foods and Household & Personal Goods, the loss witnessed an increase by 162% during the same period. The overall size of the illicit market in this 10-year period has swelled to a whopping Rs. 2,60,094 crore.
With a view to highlight the issue internationally, FICCI CASCADE stated that it is of the view that the campaign should be driven from the top-most level of the government – from the Prime Minister’s Office.
PC Jha, former chairman, CBIC and adviser, FICCI CASCADE, said, “To bolster the present efforts, now different ministries need to come together to highlight the issue on the international stage. For example, the Ministry of External Affairs can put up smuggling as a discussion agenda in international platforms like the UN General Assembly while the Ministry of Finance can provide information about the actual impact of smuggling on the economy based on in-depth studies to substantiate such discussions.”
Anil Rajput, chairman, FICCI CASCADE, said, “An International Anti-Smuggling Day declared by the UN will enable momentum to an international campaign against smuggling by bringing together nations – both developing and developed, international institutions, policymakers, industry, enforcement agencies and media.”
“It will highlight the growing hazard of smuggling and create awareness amongst consumers and the youth to mitigate smuggling which has now become an obstacle to nation-building,” Rajput added.
In India, Directorate of Revenue Intelligence (DRI) under ministry of finace is the premier intelligence and enforcement agency on anti-smuggling matters under the aegis of Central Board of Indirect taxes & Customs (CBIC). It came into existence on December 04, 1957.
The DRI with its headquarters at New Delhi has 12 Zonal Units, 35 regional Units and 15 Sub-regional units, with a working strength of about 800 officials.
In the Budget 2023 speech, finance minister Nirmala Sitharaman underlined the vision for Amrit Kaal, the 25-year-long journey to India@100 (2047).
“Our vision for the Amrit Kaal includes a technology-driven and knowledge-based economy with strong public finances, and a robust financial sector.” To achieve this, Jan Bhagidari through Sabka Saath Sabka Prayas is essential, she added.
The economic agenda for achieving this vision would focus on three priorities:
- Facilitating ample opportunities for citizens, especially the youth, to fulfil their aspirations;
- Providing strong impetus to growth and job creation; and
- Strengthening macro-economic stability
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