Illicit products market size across five key sectors has been pegged at about ₹7.97 lakh crore, according to a report launched by FICCI in association with the Thought Arbitrage Research Institute (TARI). The FICCI Cascade report noted that illicit trade is undermining legitimate businesses, distorting competition, and eating into the government’s tax revenues in the five sectors of FMCG packaged goods, personal and household care, alcohol, tobacco, and textiles & apparel.
Addressing a FICCI conference, Ravneet Singh Bittu, Minister of State for Food Processing Industries, stated that there needs to be harsh penalties and a crackdown on the nexus of people engaged in illicit trade and activities. “Punishment is necessary, and it is important to instil fear in the minds of perpetrators that harsh penalties are in store for them if they engage in illicit trade activities,” he added.
The Central Board of Indirect Taxes and Customs (CBIC) member Rajiv Talwar said the board is serving as the fulcrum in the movement against counterfeit goods and smuggling. “We have built a technology-driven risk management portal with very wide capabilities that helps us predict possible smuggling operations. CBIC field officers are making, on average, 60 detections a day with the help of this portal,” he added. Over 3,000 people have been arrested in the last 15 months, and foreign products worth ₹40 crore were seized.