Counterfeiting and smuggling pose significant challenge for law enforcement agencies: Additional Commissioner Police, Delhi

NEW DELHI, 26 March 2025: Mr. Asif Mohammad Ali, Additional Commissioner of Police and Joint Director, Delhi Police Academy, said, “Illicit activities such as counterfeiting and smuggling pose significant challenges for law enforcement agencies. As police officers, we must recognize the prevalence of counterfeit and smuggled goods, which are widely available in the market. These unlawful practices have a profound impact on the social, mental, and overall well-being of citizens.”

Addressing the FICCI CASCADE’s Capacity Building Programme Empowers Police Officers to Prevent Counterfeiting and Smuggling and highlighting the importance of law enforcement’s role in society, Mr. Ali emphasized, “As police officers, we must empathize with victims by stepping into their shoes to truly understand their suffering. It is our duty to recognize every cognizable offense, uphold both moral and legal responsibilities, and take appropriate legal action against offenders.”

While highlighting the critical role of law enforcement in ensuring public safety, Mr. Ali said, “We must work diligently to prevent such crimes from significantly impacting society, safeguarding public welfare, and maintaining law and order.”

Mr Yogesh Malhotra, Assistant Director, Delhi Police Academy said, “A skilled and empowered police force is the first line of defense against threats such as counterfeiting, smuggling, and other illicit activities. Training workshops play an essential role in strengthening their capabilities, upholding the rule of law, and safeguarding the well-being of society.”

Mr. Deep Chand, Advisor, FICCI CASCADE and Former Special Commissioner of Police, New Delhi, said, “Counterfeiting and smuggling have several detrimental effects. They result in significant losses for legitimate businesses, erode consumer trust, and deprive the nation of crucial revenue, thereby hindering overall growth and development. Moreover, the associated health risks of counterfeit products are a grave concern, posing a direct threat to the well-being of the public.”

Mr. Ashish Paul, Vice President- Corporate Affairs, ITC Ltd. stated, “Counterfeit trade and smuggling drain India’s economic potential. If we could cut illicit trade by just 50%, it would unlock unprecedented economic growth, generate employment, and boost legitimate businesses, reinforcing India’s journey toward self-reliance. ⁠Generating awareness among young enforcement officials along with the discerning consumers is the need of the hour. It will strengthen enforcement mechanisms, promote informed decision-making and meaningfully contribute towards the Prime Minister’s vision of an Atmanirbhar Bharat by 2047.”

“The notable increase in seizure of illicit cigarettes, rising from 141.91 crores in 2015 to 6659.63 crores by 2024, underscores the pressing need to address revenue losses. Recognizing and identifying illicit products are essential steps in preventing tax evasion. The extent of smuggling in the country is a cause of great concern. To counter this, it is imperative for nations to prioritize strategies for empowering law enforcement agencies to effectively combat illegal trade,” he added.

Mr. Priyank Mangal, Regional Legal Manager, HUL said, “Counterfeiting and smuggling represent significant global threats, impacting a wide range of industries. These illicit activities erode the integrity of legitimate businesses, deprive governments of vital revenues, pose serious risks to public health and safety, and have been linked to the financing of organized crime and terrorism.”

Mr. Nikhil Shah, Senior Vice President – Legal & Regulatory Affairs, Wagh Bakri Tea Group, said, “Counterfeiting weakens economies and erodes trust in markets. To achieve India’s vision of a $5 trillion economy, the enforcement, Industry and Government must join hands collectively to eliminate illicit trade, strengthen enforcement, and promote genuine businesses. The crusade against counterfeiting is a mission for a stronger, more resilient and powerful India and Indians”.

As per the report by FICCI CASCADE titled “Challenging Landscape of Illicit Trade: How Changing Factors of Consumption Affect Illicit Markets in 5 Key Industries in India”, the size of illicit market in the five key sectors- FMCG packaged goods, personal and household care, alcohol, tobacco, and textiles & apparel has been estimated at about Rs. 7.97 lakh crore. The report highlights that the illicit market size for textiles and apparel stands at Rs 4,03,915 crore, accounting for over 50 percent of the total illicit trade. Additionally, illicit markets for – FMCG (Packaged foods) and FMCG (Personal and Household Care Goods are estimated at Rs 2,23,875 crore and Rs 73,813 crore, respectively.

The report highlighted that illicit trade is undermining legitimate businesses, distorting market competition, and significantly reducing the government’s tax revenues in the five mentioned sectors. The impact of illicit trade is particularly severe in industries historically subjected to higher tax regimes, such as tobacco and alcohol. In the tobacco sector, over 50 percent of the illicit market can be attributed to punitive taxes, while for alcohol, this figure stands at 46 percent.

FICCI CASCADE has been working closely over the years with government, industry, enforcement officials, legal fraternity, consumer organizations and the youth to create awareness about the detrimental impact of counterfeiting and smuggling. Among other activities, FICCI CASCADE has been regularly engaging with law enforcement agencies including police, customs and paramilitary organizations engaged in border protection in sensitizing them on the gravity of the problem.

The programme witnessed enthusiastic participation from over 450 officers in Delhi equipping them with valuable skills and knowledge to address the adverse impacts of counterfeiting and smuggling.