Counterfeit goods a national threat: Report

BENGALURU: The thriving trade in counterfeit and smuggled goods is posing a threat to national interest and economic growth in India over the span of last two years. A report released by the Committee Against Smuggling and Counterfeiting Activities Destroying Economy (CASCADE) of the Federation of Indian Chambers of Commerce and Industry (FICCI) revealed that the total loss to the government estimated in the year 2014 on account of the illicit markets in respect to seven sectors is Rs 39,239 crore, up from Rs 26,190 crore in 2012, which is a steep rise of Rs 13,049 crore two years ago.

The seven sectors highlighted in the report include alcoholic beverages, auto components, computer hardware, FMCG – packaged foods, FMCG – personal goods, mobile phones and the tobacco industry. The report was based on a quantitative study on the impact of illicit markets on investment, innovation, tax arbitrage, and financing of organized crime and terrorism.

Amongst the various sectors, the maximum revenue loss to the exchequer on account of counterfeiting and illicit trade is attributed to tobacco products at 23%, estimating a revenue loss of Rs 9139 crore, indicated the report.