India's Illicit Trade Surge: A Growing National Concern

India is increasingly drawing the attention of sophisticated smuggling networks, targeting the country with an array of illicit goods such as narcotics, gold, and liquor. This uptick is attributed to India's economic expansion and accelerating global trade, as highlighted by a leading Customs official.

During a seminar organized by the Federation of Indian Chambers of Commerce & Industry (FICCI), Pranesh Pathak, Chief Commissioner of Customs of Ahmedabad Zone, sounded the alarm over these activities. Pathak noted that smuggling poses significant threats to national security, public health, and the integrity of legitimate commerce.

Effective enforcement efforts have led to substantial seizures, including counterfeit cigarettes and luxury watches. Despite these efforts, high indirect taxes and regulatory loopholes provide strong motivation for illegal trade, undermining legitimate businesses and cutting into government revenues.

(With inputs from agencies.)