Ushering in FDI in multi-brand retail could ensure supply of genuine goods by eliminating the intermediaries involved in production and sale of counterfeit goods, according to experts.
Ahmedabad: Ushering in FDI in multi-brand retail could ensure supply of genuine goods by eliminating the intermediaries involved in production and sale of counterfeit goods, according to experts.
"FDI in multi-brand retail can lessen the supply chain, which will eventually negate the role of those who are involved in manufacturing and sale of counterfeited goods. This way, there can be a better control on the source of goods and services," said P C Jha, Advisor, FICCI-CASCADE (Committee on Anti-Smuggling and Counterfeiting Activities Destroying the Economy).
He was speaking at the seminar on 'Curbing Counterfeiting and Smuggling - An imperative for Indian Economy' organised by FICCI-CASCADE here.
Expressing concern over "formidable" magnitude of counterfeit goods and smuggling, Jha said, "the global annual trade of fake goods is 650 billion USD. By 2015, international trade of counterfeited goods is set to increase by 100 times".
Use of counterfeited equipment and spare parts was responsible for 25,000 deaths and 93,000 injuries reported in 2009, he said, adding a substantial amount of unaccounted money is pumped into anti-national and anti-social activities like terrorism and organised crimes.
Expressing the need for stricter legal provisions, Jha said law enforcement agencies should ensure implementation of laws and improvement in coordination among intelligence agencies.
Former Gujarat High Court judge D A Mehta said that producers of counterfeit goods damage the society and economy more.
"Counterfeiters do not pay taxes which is a revenue loss for the government. Consequently, infrastructural spending in education, health and other sectors get reduced," he observed.