India's march to $40 trn economy can be seized by smuggling: Report

The magnitude of smuggling and the consequent loss to the country's economy might become a roadblock in India's march towards a USD 40 trillion economy under the government's vision of Amrit Kaal, a report said.

There is a need to launch a robust international campaign against the menace of smuggling so that major impediment in the growth path is removed, FICCI Committee Against Smuggling and Counterfeiting Destroying the Economy (CASCADE) said in a report.

While last year FICCI CASCADE took the initiative to mark February 11 as Anti-Smuggling Day, it has appealed to the government to highlight the issue of smuggling on the world stage and work with the United Nations to declare the day as '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 said.

The tax loss to Government of India because of the illicit trade has jumped 163 per cent to Rs 58,521 crore in 2019-20 for 5 key industries - alcoholic beverages, mobile phones, FMCG-household and personal goods, FMCG-packaged foods and tobacco products, as per the report.

Tax loss because of the illicit trading in two highly regulated and taxed industries - alcohol and tobacco products - has jumped 227 per cent, it said.

It further said India should also forge together the interests of similar developing countries such as Indonesia, Brazil and the Philippines which are facing the impact of smuggling.

Given the massive damage that smuggling is inflicting on the Indian economy, the government has to take up the issue at the international stage and lead a campaign against it, P C Jha, former chairman, Central Board of Indirect Taxes & Customs and Adviser- FICCI CASCADE said.

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, FICCI CASCADE Chairman Anil Rajput said.

Smuggling has been termed the crime of the 21st century as it continues to grow across the globe into a lucrative proposition for some, at the cost of causing significant losses for the consumers, industry, society and governments and more so for developing countries, it said.

It is upon countries like India that can leverage its global standing to bring out the necessary coordination and collaboration amongst various countries to create awareness, fight and mitigate this global problem that pose serious threat both to security and economy, it added.