Member of Parliament, Praveen Khandelwal Flags Off FICCI CASCADE Auto Rally, Appeals to Join the Crusade Against Smuggling

Aug 03, 2024

• Imperative to spread awareness regarding counterfeiting and smuggling

 

• Size of illicit trade market in FMCG packaged foods segment up nearly 600 per cent in past decade, followed by alcohol, FMCG, personal goods and tobacco at 317 per cent, 270 per cent and 155 per cent, respectively

 

NEW DELHI, 3 August 2024: FICCI CASCADE (Committee Against Smuggling and Counterfeiting Destroying the Economy, today organized an ‘Auto Rally’ to engage with people and create awareness on the detrimental and wide-ranging consequences of illicit trade.

 

Flagging off the auto rally, Mr Praveen Khandelwal, Member of Parliament said, “Smuggling has a crippling effect on our economy and many illicit players use funding from those sources to boost terror funding. Thanks to our Honourable Prime Minister Shri Narendra Modi Ji, the foundations of terrorist activities have been uprooted and we don’t see any terror attacks in our country anymore. However, terrorist networks still try to operate and stay active by funnelling money through these smuggling networks. It is thus important for us to spread awareness about anti-smuggling activities and as citizens, we must take the responsibility to ensure smuggled and counterfeit goods don’t enter our markets.

 

“I also request FICCI to conduct awareness drives of this nature in every state and I will exhort the retailer community to participate wholeheartedly in these initiatives. I will also engage in discussion with the FICCI CASCADE team to see how we can move towards eradicating this menace,” he added.

 

Mr Anil Rajput, Chairman, FICCI CASCADE, said, “Our country will make progress at an increasingly rapid pace when we buy all goods in a legitimate manner and by paying designated taxes on them. Without this, the government will find it difficult to provide essential services to its citizens. Smuggling activities not only have a debilitating impact on the economy in the form of job losses and revenue leakages, but they also have implications on national safety and security.   

 

“Sometimes, illicit players use smuggling as a route to enter Indian markets, we should ensure that smuggled goods do not infiltrate our markets. I sincerely hope that through the vast network of auto drivers, we will be successful in amplifying our message that has the potential to effectively counter smuggling and other related illicit trade activities,” he added.

 

The auto rally was meticulously organised and proceeded through Tansen Marg, Mandi House, Barakhamba Road, Outer Circle Connaught Place, and Barakhamba Road before culminating at FICCI House. The convoy of auto rickshaws carried vibrant banners, vividly highlighting the urgent issues associated with illicit trade.

 

According to the 2022 FICCI CASCADE study titled 'Illicit Markets: A Threat to Our National Interests,' there has been a significant rise in the illicit trade market across critical industries such as FMCG-packaged foods, FMCG-household and personal goods, alcoholic beverages and tobacco products. 

The rise in size of illicit trade market can be gauged from the fact that in the 2010-2020 period, the FMCG packaged foods segment in particular witnessed an alarming rise of nearly 600 per cent when the market grew from Rs 20,378 crore in 2010 to Rs 1,42,284 crore in 2020.

It was followed by the alcohol segment, which witnessed a 317 per cent rise in the same period from Rs 5,626 crore to Rs 23,466 crore while in the FMCG personal goods segment, its size rose nearly 270 per cent from Rs. 15,035 crore in 2010 to Rs. 55,530 crore in 2020. The tobacco segment too saw a 155 per cent jump with the size increasing from Rs 8,965 crore to Rs 22,930 crore in the same period. 

The study noted that the loss to the exchequer stood at Rs 58,521 crore, up from Rs. 22,230 crore, a staggering increase of 163 per cent. 

These figures underscore the urgent need to combat illicit trade and safeguard India's economic interests.