Manufacturing Sector Losses Up 44% Due to Illicit Trade: Report

Seven major manufacturing sectors suffered an estimated loss of Rs 1,05,381 crore during 2013-14 due to illicit trade, according to a report by industry body Ficci. The report on ‘Illicit Markets’ focused on seven major manufacturing sectors – auto components, alcoholic beverages, computer hardware, FMCG personal goods, FMCG packaged foods, mobile phones and tobacco.

On account of illicit trade, Ficci-CASCADE report said the estimated loss to the seven sectors has increased by 44.4 per cent in just two years – from Rs 72,969 crore in 2011-12 to Rs 105,381 crore in 2013-14.

Moreover, government tax (direct and indirect) losses increased almost 50 per cent to Rs 39,239 crore in 2014 from Rs 26,190 crore in 2012, the report noted.