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Kovind Warns Illicit Trade Is Exploiting Legitimate Supply Chains

Kovind Warns Illicit Trade Is Exploiting Legitimate Supply Chains
Illicit trade increasingly exploiting legitimate supply chains, digital platforms: Ram Nath Kovind · thestatesman.com

Smuggling means moving illegal goods, while counterfeiting means making fake versions of real products.

Ram Nath Kovind said these activities weaken the trust needed for businesses and economies to work.

Illegal groups are now using normal delivery systems, paperwork, money channels and online platforms to hide what they are doing.

This can hurt shoppers, honest businesses and government services.

Technology such as data analysis and artificial intelligence may help find suspicious activity.

However, officials said technology cannot solve the problem by itself.

Governments, companies, enforcement agencies and consumers must share information and work together.

The conference said stopping illegal goods before they enter markets is as important as seizing them afterward.

Key facts

Conference
12th edition of FICCI CASCADE’s MASCRADE 2026
Theme
“One World, One Fight: Eliminating Counterfeiting and Smuggling Through Collective Action”
Reported cases
More than 3,000 commercial cases booked by the Directorate of Revenue Intelligence in 2024-25
Amounts involved
Around Rs 4,000 crore in duty, export and incentive amounts
Technology measures
Data analytics, artificial intelligence, digital transparency systems and non-intrusive inspection technologies
Supply-chain risks
Transport, storage, wholesale and distribution, rural retail, social media, e-commerce and encrypted communications
Proposed framework
FICCI CASCADE Chairman Anil Rajput’s UNITE framework: Unified Intelligence, Networked Enforcement, Innovation, Trusted Trade and Empowered Citizens

Quotes

Vivek Chaturvedi

Chairman of the Central Board of Indirect Taxes and Customs

“The illicit economy is no longer simply about bringing prohibited goods across the border. It is increasingly about creating an entire parallel supply chain using legitimate logistics infrastructure, documentation, financial channels, and digital platforms to disguise such illicit activity.”
thestatesman.com
“The entire economic system is based on trust. Therefore, the movement against counterfeiting and smuggling is about protecting the trust in the systems and institutions that allow an economy to function.”
thestatesman.com

Sources

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