59K Crores Revenue loss to Government / Nation (This is just a sample): How to Combat illicit Trade, by FICCI

Federation of Indian Chambers of Commerce & Industry conducted an event where many insights learned from the experts about the illicit Trade and its effects to the nation and citizen as overall. FICCI's Combating illicit Trade: Insights, Challenges, and Solutions program helped many attendees to know the real issue of the society and how to overcome it etc.

Sales loss to Industry: Rs 2,60,094 crores (2019-20)

You can go through the image graph given herewith to learn a bit and read the detail further that we have provided in a brief on a few departments. Remember, this is just a sample and not covered for many departments and it affects the economy and the nation.

Medicine and illegal Drugs: This is one of the biggest concerns for the authority and the nation. Not only this, the future (youth) was destroyed slowly that would affect individually and collectively whole as a nation. With regards to health medicine, there are many fake or duplicate medicines that charge more or less the original price and directly affect the original manufacturers and the Government's revenue besides health issues for the consumer.

Smuggling in different forms creates different issues where less restriction for neighboring countries visit either side.

Fake currency: This is one of the biggest problems for the nation. Experts shared the knowledge about India's fake currency coming from the nearby countries and how they tackled it. This one is directly affecting the nation's economy without any doubt.

Brands: A brand's expertise revealed that they are facing a lot of fake products of their brand in the market which they investigate, spend, take legal action, money loss, unable to create employment further and business strengthening issues. In case if there is a fake product and sale is reasonable or better for the fake products then first of all the fake manufacturer owner alone would get a benefit that won't be accountable to the Government. Less employees with less salary without employment benefits etc. would be there compared to the original organization and get effects that get less benefit that shares to Government is less as well. No new jobs created further and no projects etc.

Customs: They are frontline executives who face different issues in their respective field whether it could be from Port or Airport or other designated places. One of the respected customs persons shared his concern about the undervalued product or mismatching product or other reason to cross the customs officials.

The third image above shows the loss we face.

1. Magnitude of the problem is huge
2. Significant loss of Government revenue
3. Sale proceeds main source of Terror financing
4. Poses problem to security of the country
5. Results in availability of less fund for public welfare work
6. Causes serious harm to life and health of the people
7. Results in Job losses
8. Damage brand reputation
9. Lack of Public awareness about the severity of the problem
10. Penal provisions and enforcement level do not create deterrence etc.

 

59 Thousand Crores Revenue loss to Government (2019-20)

 

This is combined loss to the Government (State and Central) in the year stated. Few of them we have highlighted above but there are many departments in which we face smuggling or illicit trade issues that create big losses to the nation, employment and economy etc.

 

Public awareness is very important on this before making another law to combat on this.

Stay tuned for more update anytime soon.