Smuggling, piracy hindering India's manufacturing growth: Ficci

New Delhi: Widespread smuggling, counterfeiting and piracy can affect India's goal of becoming a manufacturing hub of the world, industry body Ficci today said.

The market for contraband, smuggled and counterfeit goods is thriving in India and is today one of the biggest challenges faced by the domestic industry, it said in a statement.

"India today has the potential to become a global manufacturing hub. However, widespread smuggling, counterfeiting and piracy can act as a dampener in achieving this goal," the chamber said.

It said according to a CASCADE (Committee against Smuggling and Counterfeiting Destroying the Economy) study, supply of illicit goods have increased 44.4 per cent between 2012 and 2014 in sectors such as tobacco, alcoholic beverages, auto components, computer hardware and FMCG.

"The genuine goods collectively suffered an annual sales loss of Rs 32,412 crore, while the government?s loss in tax revenue went up by Rs 13,049 crore," it added.

It also said illegal money generated through illicit trade is a major source to finance terrorism, insurgency and other organised crimes.

To deliberate upon all these issues, the chamber is organising a two-day event - 'MASCRADE 2017 ? Movement Against Smuggling and Counterfeit Trade' from October 12.

International institutions including World Customs Organisation, INTERPOL, United Nations Office for Drugs and Crime, Organisation for Economic Corporation and Development (OECD) and US Homeland Security will represent at this event.

"MASCRADE 2017 is structured to ensure that national and international stakeholders can dialogue and deliberate to identify opportunities for joint action between governments, private sector, and enforcement machinery to combat illegal trade," it added.