15% of India's GDP is from fake goods, Survey finds
-- Trade of illicit goods in just seven industries crossed Rs 105,381 crore.
-- Fake goods dealings increased 44.4% between 2011-12 to 2013-14.
-- Illicit trade estimated to be nearly 8-15% of India’s GDP.
Increased dealings in India's fake goods market in seven industries observed by industry body – Federation of Indian Chambers of Commerce and Industry (FICCI) was Rs 105,381 crore or Rs 1.05 lakh crore.
In a letter to the Department of Revenue Secretary Hasmukh Adhia on May 3, FICCI pointed out the increase in illicit trade which was nearly 8-15% of India’s Gross Domestic Product (GDP).
“Trade in illicit goods is highly pervasive across countries and sectors, representing a multi-billion-dollar industry globally that continues to grow. It is estimated that 8%-15% of global GDP is impacted due to illicit trade,” FICCI said.
The letter further added, “As per FICCI CASCADE reports, the estimated loss to the industry in just 7 industry sectors is Rs 1,05, 381 crores, an increase of 44.4% between 2011-12 to 2013-14.”
FICCI CASCADE which works toward curbing the menace of illicit goods market that infiltrate and undermine licit markets said that it has set up awareness programmes and initiatives.
At the beginning of 2016, India was at fifth position being an exporter of fake goods behind China, Turkey, Singapore and Thailand.
Total seizures of fake imported goods at the time was 1.2% in India as per a study conducted by OECD (Organisation Economic Cooperation and Development) and the European Union's Intellectual Property Office.
India has also called for enhanced efforts in international cooperation to address the illicit trade across the nation’s borders, a report by PTI said on Sunday.
Tax evasions and hawala transactions needed to be curbed in order to safeguard tax revenue the ‘lifeblood of the State,’ UN Ambassador Syed Akbaruddin at a workshop on International Taxation said.
“You will kindly agree that to deal with a problem of this magnitude, it is necessary that adequate attention is given to bring forth the magnitude of the menace. In furtherance of our endeavour of awareness generation we have undertaken:
--A study on ‘Invisible Enemy – A Threat to our National Interests: Extent Causes and Remedies’ which estimates the extent of smuggling of the top five key goods into India.
-- Compilation of media reports on the various seizures of illegal cigarettes,” FICCI said in its concluding remarks.