The illicit trade in 5 key industries — FMCG (packaged goods), FMGC (personal and household care), alcohol, tobacco, and textiles and apparel — is valued at a whopping Rs 7,97,726 crore and there is an urgent need to crack down heavily on the nexus of people engaged in such activities, the government said on Wednesday.

Textiles and apparel alone had an illicit market size of Rs 4,03,915 crore in 2022-23, accounting for over 50 per cent of the total illicit market.

According to Ravneet Singh Bittu, Minister of State for Food Processing Industries and MoS for Railways, co-ordination between various enforcement agencies is key to overcome the battle against the nefarious elements ruining our economic growth.

“Together, we build resilient economies, fostering global collaboration to combat these threats with robust initiatives. Let’s safeguard Bharat’s future together,” the minister said at the FICCI CASCADE event.

“Punishment is necessary, and it is important to instil fear in the minds of perpetrators that harsh penalties are in store for them if they engage in illicit trade activities,” the minister noted.

Rajiv Talwar, Special Secretary to government and Member (Compliance Management), Central Board of Indirect Taxes and Customs (CBIC), said over 3,000 people have been arrested in the last 15 months and foreign products worth Rs 40 crore were seized.

“CBIC is serving as the fulcrum in the movement against counterfeit goods and smuggling. We have built a technology-driven risk management portal with very wide capabilities that help us predict possible smuggling operations. CBIC field officers are making on an average 60 detections a day with the help of this portal,” Talwar told the gathering.

FMCG (packaged foods) and FMCG (personal and household care goods) were at illicit market size of Rs 2,23,875 crore and Rs 73,813 crore, respectively, account for nearly 37 per cent of the total size of the illicit market in 2022-23.

Anil Rajput, Chairman, FICCI CASCADE, said that consumers have and will continue to remain the prime focus group for both legal and the illicit players.

“Policymaking in the present times is much more attuned to the ground situation on this subject and I must also commend the enforcement agencies for mounting a strong defence against illicit trade,” he said.

The illicit market has expanded faster in rural India, especially among the growing classes of middle- and lower-income groups.