FICCI CASCADE as part of its efforts to create awareness, commissioned a special study on the impact of smuggling and counterfeiting on seven key sectors of the economy. The report has been prepared by Thought Arbitrage Research Institute (TARI), New Delhi made a pioneering attempt to estimate the size of the ‘grey market’ for selected industry sectors in India and projected the economic loss to industry, government and consequent social impact. The report was released by Prof. K.V. Thomas, Hon’ble Minister of Consumer Affairs, Food Supply and Distribution, on
December 20th. He also gave a special address on “Building a Consumer Rights Movement—Empowering the Consumer of Today.”
According to the study the estimated annual Tax loss to government is Rs. 26, 190 crores. The overall estimate of annual sales loss to industry is put at Rs. 1,00,000 crores per the report. The key sectors which were included in the study were Auto Components, Alcohol, Computer Hardware, FMCG (Personal Goods), FMCG Packaged Goods), Mobile Phones and Tobacco. The highest loss to industry in terms of revenue is from FMCG (Packaged Goods) at Rs. 20,378 crores (23.4%), FMCG (Personal Goods) at Rs. 15,035 crores (25.9%), Auto Components at Rs. 9,198 crores (29.6%), Mobile Phones at Rs, 9,042 crores (20.8%) and Tobacco at Rs. 8,965 crores (15.7%). The maximum tax loss on account of smuggled and counterfeit products to the government is from the Tobacco Sector at Rs. 6, 240 crores followed by FMCG (Packaged food) at Rs. 5,660 crores and FMCG (Personal Goods) at Rs. 4,646 crores. Tobacco sector accounts for the highest revenue to tax percentage loss to the government at over 60%. Tax arbitrage is considered one of the key contributors to the menace of smuggling and counterfeiting.
The National Consumer Week was flagged off with the “Awareness through Art” programme on December 18th, where over 272 students participated from various schools of NCR Delhi in an “On the Spot Painting Competition on Consumer Rights.” The competition focused on the detrimental effects of smuggled, counterfeit and fake goods on the health and safety of consumers, with specific topics like, “Say no to Fakes”, and “Does Black Money encourage crime in society?” The paintings by the students also brought to fore the steps, which can be taken by consumers to avoid being duped into purchasing these fake products, with topics like “Buying a product without receipt—Sensible or Dangerous” and “Be responsible: Insist on a bill”.
The paintings by the students also brought to fore the steps, which can be taken by consumers to avoid being duped into purchasing these fake products. All the participating students were issued certificates. Cash prizes of Rs. 5,000/-, Rs. 3,000/- and Rs. 2,000/- were issued to the 1st, 2nd and 3rd prize winners respectively. Prizes and certificates were issued by Smt. Renu Agrawala. On December 19th a “National Consumer Rights Meet” was organized where Consumer Rights Activists from various states of India gathered to discuss the future course of the Consumer Rights Movement. During hos keynote address on the occasion, Mr. Pankaj Agrawala, secretary, Ministry of Consumer Affairs said that, “The market was becoming very complex with service industry overtaking the manufacturing industry.” He said that a sizeable section of the population was not even aware of quality products. He wanted consumer organisations to be more active in creating awareness.
Mr. Anil Rajput, Chairman, FICCI-CASCADE said that, “Awareness is the beginning of change.” He said that FICCI-CASCADE would continue its efforts to create consumer awareness through various campaigns throughout the nation.
