The widespread smuggling of gold, cosmetics, medicines, jewellery, readymade garments, cigarettes, alcohol, capital goods and consumer electronics is drain on the exchequer and hit the economy.

According to a recent study by FICCI’s Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (Cascade), smuggling in just five Indian industries — textiles, tobacco products, readymade garments, capital goods and consumer durables — resulted in a loss of Rs 1,17,253 crore to the economy and job loss of 16.36 lakh.

In 2020, $2.2 trillion (about 3 per cent of world GDP) was lost globally due to illicit trade, according to a World Economic Forum estimate.

While policymakers and enforcement agencies around the world continue to do their part, the problem of smuggling can only be overcome by the consumers.

In a first-of-its-kind initiative globally, FICCI Cascade has launched the Anti-Smuggling Day to generate awareness among consumers and encourage them to boycott illicit goods.

Hem Pande, former Secretary, Ministry of Consumer Affairs, and Think Tank Member, FICCI Cascade, said an aware, conscientious and informed consumer can lead the battle against smuggling by engaging with fellow consumers in awareness-raising events, including social media platforms.

Consumers may curb the menace of counterfeiting and smuggling by buying local, eating local and wearing local. Consumers boycotting smuggled and counterfeited goods will be the icing on the cake, he said.

The first-ever Anti-Smuggling Day, observed on February 11 and will be an annual event to bring policymakers and enforcement agencies share a common platform with consumers to discuss ways to collectively defeat the crime syndicates that run large-scale smuggling operations.

The notorious smuggling groups often use their illegally obtained wealth to support nefarious activities such as terrorism and internal conflicts.

To contain this menace, the efforts made by government enforcement agencies such as customs, police and paramilitary agencies are proactively supported by the public. If consumers decide to make purchases only against bills, and only from authorised places and sources, not the dubious items, the threat can be minimised effectively. People as responsible citizens have to co-operate with the government to eliminate the scourge of smuggling," says PC Jha, former Chairman, Central Board of Indirect Taxes and Customs, and Advisor, FICCI Cascade.

Illicit products are often substandard and can cause health problems and injuries to consumers. While counterfeit car parts can lead to accidents, smuggled building materials in power plants and other facilities can potentially cause disastrous consequences.