Counterfeiting, smuggling grave threat to economy: KPA Director

Counterfeiting, smuggling grave threat to economy: KPA Director

July 31, 2022

Mysore/Mysuru: Director of Karnataka Police Academy Anupam Agarwal has said that counterfeiting and smuggling are substantial threats to the economy and there is conclusive evidence of the increasing involvement of terror organisations in funding such illicit trade activities.

“There are adequate laws available, but enforcement of the laws makes the role of Police officers even more important in the fight against counterfeiters and smugglers,” he added.

He was addressing the ‘Capacity Building Programme for Police Officers on Prevention of Counterfeiting and Smuggling’ organised by FICCI’s Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE).

He said to meet the vision of Prime Minister Narendra Modi making the Indian economy, a 5-trillion-dollar economy, all stakeholders like FICCI, the Police and the industry need to work together more closely.

The KPA Director said that the loss of revenue to the Government due to counterfeiting and smuggling has a direct impact on spending on welfare measures such as healthcare and education. “Police Department is the primary law enforcement agency in our country and should play a significant role in ensuring that proactive and collaborative actions are taken against illicit players to protect the consumer’s health, life and safety,” he noted.

Weak surveillance

While giving an overview on the socio-economic impact of counterfeiting and smuggling, Deep Chand, Advisor, FICCI CASCADE and Former Special Commissioner of Police, New Delhi, highlighted that lack of stringent enforcement, weak surveillance and weak regulatory framework are the main factors responsible for illicit trade.

He said that the wider social, investment and criminal enforcement costs due to smuggling and counterfeiting could touch 4.2 trillion dollars by 2022, putting at risk 5.4 million legitimate jobs.

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Pradeep Dixit, Vice President – Industry Affairs, ITC Ltd. stated that India is the 4th largest and fastest growing market for smuggling of illegal cigarettes, which calls for heightened awareness and sensitisation of people.

Nitin Saluja, Senior Policy Manager, Customer Trust, Amazon India said, “Amazon has introduced several initiatives and has put in resources to help customers enjoy the benefits of online shopping. He stated that their focus is to make marketplace a reliable and safe for customers, brands and sellers to conduct transactions. “We are focused on mitigating fraud and abuse on market places that hamper customer trust while helping protect from the risks the digital era may present,” he added.

FICCI CASCADE has been working closely with the Government, industry, enforcement officials, legal fraternity, consumer organisations and the youth to create awareness of the adverse impact of the problem of counterfeiting and smuggling.  The initiative has been regularly engaging with law enforcement agencies in sensitising them on the gravity of the problem.


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