21^st May 2025 | Trivandrum, Kerala

FICCI CASCADE organized a seminar titled “Proactive Approaches to Combat Counterfeiting and Smuggling” on 21st May, Trivandrum, Kerala aimed at addressing the growing threat posed by illicit trade. The seminar brought together policymakers, enforcement agencies, industry representatives, and civil society to discuss collaborative strategies to curb counterfeiting and smuggling, which have far-reaching implications for public safety, economic stability, and national security.

While speaking at the seminar, Shri. P Rajeeve, Hon’ble Minister for Law, Industries, and Coir, Government of Kerala, emphasized that the proliferation of counterfeit and smuggled goods poses significant risks to society. These illegal activities endanger public health, obstruct economic growth, and in certain cases, contribute to the funding of organized crime and terrorism. The Minister underscored the need for a coordinated, multi-stakeholder approach that involves government entities, industry associations, and civil society working together to safeguard national interests and the welfare of citizens.

He further reaffirmed the Kerala government’s strong commitment in addressing this issue through collaborative measures involving law enforcement, industry partners, and local communities. The Minister highlighted the adoption of advanced technologies such as drone-based surveillance for real-time monitoring, especially in vulnerable coastal and border regions. He also commended FICCI CASCADE for its ongoing efforts in raising awareness and mobilizing public support to reject and resist the circulation of counterfeit and smuggled products.

Sharing his perspective on the economic impact of illicit trade, Shri. A P M Mohammed Hanish, Principal Secretary, Department of Industries & Commerce, Government of Kerala stated that illicit trade is not only harming legitimate businesses but also significantly undermining government revenues. Shri Hanish opined that the state’s firm resolve to combat this threat through a comprehensive strategy—strengthening surveillance mechanisms, deploying advanced technologies at key checkpoints, and fostering seamless inter-agency coordination. He commended the initiative, saying, FICCI CASCADE’s seminar is a timely intervention that will elevate public consciousness and strengthen collaboration among all stakeholders in the fight against smuggling.

While delivering the welcome address, Dr M I Sahadulla, Immediate Past Chairman, FICCI Kerala State Council emphasized on the need to address existing policy gaps, enforcement challenges, limited public awareness, and emerging digital vulnerabilities in the battle against illicit trade. He emphasized that leveraging technological advancements such as authentication mechanisms, traceability frameworks, and AI-driven surveillance will be instrumental in curbing counterfeiting and smuggling. Dr. Sahadulla further highlighted that consumer education must form the cornerstone of any effective strategy. “An informed consumer,” he mentioned, “serves as the first line of defense against illicit goods.” Fostering a culture rooted in awareness, ethical consumption, and shared responsibility, he added, is vital to sustaining long-term impact.

Mr. P C Jha, Advisor, FICCI CASCADE and Former Chairman, Central Board of Indirect Taxes and Customs shared a detailed presentation on “Outlining the Landscape of Illicit Trade Practices – Analysis & Implications,” offering deep insights into the evolving dynamics and far-reaching consequences of illicit trade. Mr. Jha noted that India’s robust economic growth has given rise to a dynamic and increasingly aspirational consumer base. Between 1999–2000 and 2022–23, rural and urban consumption at current prices surged 7.6 times driven by higher incomes, rapid urbanisation, and improved access to education and economic opportunities. However, this surge in aspirations has not always been matched by corresponding purchasing power, creating fertile ground for illicit trade and counterfeiting. He also mentioned that smugglers are exploiting price disparities and regulatory gaps to tap into this unmet demand.

Mr. Baby Mathew Somatheeram, Chairman & Managing Director, Somatheeram Ayurveda Group & Convenor FICCI Tourism Committee stated that that Kerala too has fallen victim to the growing menace of counterfeiting, smuggling, and contrabands. These persistent threats have far-reaching consequences, affecting industries, law enforcement agencies, consumers, the government, and the economy at large. The expanding market for illicit goods is spreading rapidly and poses one of the most significant challenges facing Indian industry today.

A key highlight of the seminar was a thought-provoking panel discussion on “Policies to Prevent Counterfeiting and Smuggling,” where Mr. Deep Chand, Advisor, FICCI CASCADE and Former Special Commissioner of Police, New Delhi, offered valuable insights into the growing reach of the illicit market. He shed light on the grey market’s rapid expansion in rural India, particularly among the emerging middle- and lower-income segments. Once primarily confined to urban, high-income areas, counterfeiting and smuggling have now made deep inroads into rural regions, underscoring the expanding scale and reach of these illicit activities. Mr. Chand noted that both the central government and the Government of Kerala have taken proactive measures to curb this growing threat.

Dr. Tiju Thomas, Commissioner of GST, Customs and Central Excise cited that there is a strong connection between gold smuggling and money laundering in the country. Gold being a low volume, high value item which is easily concealable, transportable and quickly disposable, finds wide acceptance among money laundering syndicates. He also pointed to a notable rise in the number of cigarette seizures in 2023–2024, with a total of 90.98 million units confiscated. Adding further depth and perspective to the discussion, the panel featured several distinguished experts from diverse sectors. The esteemed panellists included; Dr. Arul R B Krishna, IPS, Superintendent of Police, Railways, Kerala; Mr Kalliyoor Sasi, Vice President, Kerala Film Chamber, General Secretary, Kerala Film Society and Mr Anish P Joseph, Regional Business Manager Kerala – STN, HMD Global Oy.

The seminar saw a gathering of over 150 industry captains, consumer forum representatives, government officials, and various stakeholders from across sectors. Their active participation and diverse perspectives underscored a shared commitment in tackling the growing menace of illicit trade through collaborative dialogue and actionable policy solutions.