Counterfeiting, smuggling hinder India’s sustainable economic growth, says Kerala minister Rajeev

Kerala Minister of State for Industries and Commerce P Rajeev on Saturday said counterfeiting and smuggling are global issues, undermining the legitimate competitive advantage of rightful owners, hindering innovation, employment opportunities and sustainable economic development of the country.

Addressing a seminar on ‘Preventive Strategies to Combat Counterfeiting and Smuggling’ organized by the Federation of Indian Chambers of Commerce and Industry (FICCI), the Minister said that it is imperative to prioritize education and awareness on the harmful consequences of counterfeiting and smuggling .

FICCI’s Committee Against Smuggling and Smuggling Activities Destructing the Economy (CASCADE) organized the seminar to highlight the adverse impact of counterfeiting and smuggling on the economy and suggest concrete measures to combat the menace. The problem of counterfeiting and smuggling represents a huge global issue that affects almost all industry sectors on a worldwide scale. This undermines the legitimate competitive advantage held by the rightful owners, stifling innovation, employment opportunities and the country’s sustainable economic growth, Rajeev said.

He said that youth, as the consumers of tomorrow, have the power to inspire and drive the necessary change through their choices and behaviour.

Kochi City Police Commissioner, K Sethu Raman said there has been a significant change in the methods of smuggling and counterfeiting in the last decade, mainly due to the rise of the digital economy.

“This change has posed a major challenge to police investigation, as it has led to an increase in the incidence of cyber frauds. Every month, hundreds of complaints related to such crimes are being registered. Moreover, advancement in technology has enabled new types of financial products, such as bitcoin and cryptocurrencies,” the commissioner said.

Customs Preventive Commissioner in Kochi, Rajendra Kumar said that as part of its mission to effectively combat smuggling and counterfeiting Customs maintain border control, gather intelligence, conduct risk assessments, foster stakeholder cooperation Play an important role in giving and raising public awareness.

He said that in the year 2022-23, Kerala Customs successfully handled 810 cases, seizing a significant quantity of 630 kg of gold with an estimated value of 311 crores. “Apart from this, the Kerala Customs Department has also registered 123 cases of smuggled cigarettes worth Rs 3.29 crore,” Kumar said.

The Minister felicitated the students who participated in the inter-school competition organized by FICCI CASCADE on the theme ‘Role of youth in making India free from smuggling and counterfeiting’.

According to its recent report, FICCI said in a release, as per its recent report, the exchequer of India faced a tax loss of Rs 58,521 crore in 2022 due to illegal trade in five major industries – mobile phones, FMCG-household and personal goods, FMCG-packaged. Foods, tobacco products and alcoholic beverages.

As per the report, the illegal market size in the above-mentioned industries stood at Rs 2,60,094 crore for the year 2019-20, with the FMCG industry – household and personal goods, and packaged foods – accounting for 3/4 of the total. The total illegal value of goods in five major industries, it said.

“It is a significant burden on the country and its development aspirations. Illegal trade not only causes severe economic losses, but also involves serious health and safety threats that can have devastating effects on society. Its long coastline and existing Owing to port connectivity, Kerala has long been a victim of illegal trade for a wide range of products such as drugs, tobacco, gold, etc.,” the release said.

FICCI said the country is witnessing widespread smuggling of various product categories such as gold, cigarettes, cosmetics, drugs, jewellery, readymade garments, liquor, capital goods and consumer electronics, which is seriously affecting the country’s economy. Is.

FICCI has set up a committee CASCADE with the participation of leading industries from all sectors of the economy to raise awareness against this issue and work with the government and other agencies to fight the menace.