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India's Illicit Trade Costs $15.6 Billion in Lost Taxes
Some businesses sell goods illegally or make fake versions of real products.
These goods can include clothing, shoes and tobacco.
A report estimates that India’s illegal-goods market is worth about US$231.5 billion each year.
Because these sales are not properly taxed, India may lose about US$15.6 billion in tax revenue annually.
The problem is also growing around the world.
Globally, illicit goods could be worth US$4.833 trillion in 2025.
Criminal networks are becoming more sophisticated.
The report says stronger, layered strategies are needed to protect legal businesses and collect taxes.
India’s illicit goods market is estimated at US$231.5 billion annually.
The shadow economy may cost India approximately US$15.6 billion in tax revenue each year.
Globally, contraband, counterfeit and unregulated goods could reach US$4.833 trillion in 2025.
Textiles, footwear and tobacco are among the sectors most affected in India.
The report says increasingly sophisticated criminal networks are challenging enforcement efforts.
- Who
- FT Longitude, through its Shadow Markets report, examined illicit trade affecting India.
- What
- The report estimates that illicit goods in India are worth US$231.5 billion annually, resulting in about US$15.6 billion in lost yearly tax revenue.
- Where
- The report was presented in Mumbai and focuses partly on India.
- When
- The global estimate cited in the report applies to 2025; the report was presented at the ASIASec2026 conference.
- Why
- Contraband, counterfeit and unregulated goods reduce tax collection and threaten legitimate commerce.
Key facts
- Global illicit trade estimate
- US$4.833 trillion in 2025
- India illicit goods estimate
- US$231.5 billion annually
- Estimated Indian tax loss
- US$15.6 billion annually
- Report
- FT Longitude’s Shadow Markets report
- Presentation
- ASIASec2026 conference in Mumbai
- Most affected sectors
- Textiles, footwear and tobacco
- Key challenge
- Increasingly sophisticated criminal networks
Sources
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