Advertisement
Monday, Aug 08, 2022
Outlook.com
Outlook.com

Fake Goods, Smuggling Caused Rs 1.17 Lakh Cr Loss, Cost 16 Lakh Jobs In 2017-18: FICCI Report

Experts believe that if the problem of counterfeiting, smuggling and piracy continue to go unchecked, it could threaten to subvert the economic and societal stability of countries across the world.

Fake Goods, Smuggling Caused Rs 1.17 Lakh Cr Loss, Cost 16 Lakh Jobs In 2017-18: FICCI Report
Representational Image | AP Photo
Fake Goods, Smuggling Caused Rs 1.17 Lakh Cr Loss, Cost 16 Lakh Jobs In 2017-18: FICCI Report
outlookindia.com
2019-09-26T13:54:25+05:30

Counterfeiting and smuggling have caused a loss of Rs 1.17 lakh crore to the Indian economy in 2017-18 in five key industries -- textiles, tobacco products (cigarettes), readymade garments, capital goods (Machinery and Parts), and consumer (Electronics) durables.

The industry body, the Federation of Indian Chambers of Commerce and Industry (FICCI), has said in its latest report released at an international conference in Delhi on Thursday.

Titled as 'Invisible Enemy: Impact of Smuggling on Indian Economy and Employment’, the report further estimates that the total livelihood opportunity lost in these five sectors is about 16.36 lakh in 2017-18.

Capital goods (machinery & parts) industry suffered the most with Rs 52,511 crore loss which rendered 6.12 lakh workers jobless. Consumer (Electronics) durables industry was the second highest with Rs 21,452 crore loss to its business.

Trade in smuggling, contraband, counterfeit and pirated goods is a global problem which, according to the report, has risen steadily in the last few years and now stands at 3.3% of global trade.

Experts believe that India is among the most affected countries due to poor enforcement of law and corruption.  

“Hence, its existence and operation are broad in scope and large in value, impacting not only the global economy, causing losses to industry, government and society but are also adversely affecting the health and safety of the consumers,” the report said.

Smuggling has posed key challenges and one of the effective ways to arrest it is “to make compliance and related processes more robust,” the report states.

Experts believe that if the problem of counterfeiting, smuggling and piracy continue to go unchecked, it could threaten to subvert the economic and societal stability of countries across the world.

The two-day conference aims at bringing together experts from policymaking, law, brand protection, industry, enforcement agencies and media to find out various ways to counter the problem.

In 2011, FICCI formed a body -- Committee Against Smuggling and Counterfeiting Activities Destroying Economy (CASCADE)  –  to assess the socio-economy impact of counterfeiting in India.

In its previous report, released in 2014, it was estimated that the losses in FMCG Packaged Goods, FMCG Personal Goods, Automobiles, Computer Hardware, Mobile Phones, Tobacco, Alcohol, Broadcasting and Motion Pictures had increased by 44.4% in just two years, from Rs 72,969 crore in 2011-12 to Rs 105,381 crore in 2013-14.

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Lament Of Separation: Songs Of Habba Khatun, Last Queen Of Kashmir, Still Echo In Valley

Lament Of Separation: Songs Of Habba Khatun, Last Queen Of Kashmir, Still Echo In Valley

In happy times and sad, Habba Khatun’s sensuous songs make both young and old emotional. With the never-ending conflict bringing tragedies to every doorstep, Habba’s lyrics of separation amplify their mourning.

How Indian Laws Govern People’s Right To Love And Live

How Indian Laws Govern People’s Right To Love And Live

In India, only those relationships between a man and a woman are considered to be legitimate when there is a marriage between the two.

Kohli Quits Test Captaincy, Leaves Leadership Vacuum

Kohli Quits Test Captaincy, Leaves Leadership Vacuum

Virat Kohli, 33, had recently stepped down as India's T20I captain and was subsequently removed as the ODI captain.

UP Elections 2022: How Congress Is Harnessing Power Of 'Persecuted' Women To Counter BJP

UP Elections 2022: How Congress Is Harnessing Power Of 'Persecuted' Women To Counter BJP

A Mahila Congress leader, who is the face of the ‘Ladki Hoon, Lad Sakti Hoon’ campaign, however, has accused the party of anti-women bias after she was denied a ticket.

Advertisement