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India lost 16 lakh jobs in 2017-18 due to smuggling: FICCI

Oct '19
Pic: Shutterstock
Pic: Shutterstock
Illegal movement of goods in five sectors—textiles, readymade garments (RMG), cigarettes, consumer electronics and machinery and components—hampered the addition of over 16 lakh jobs in India in 2017-18 fiscal, according to a new study. Addition of over 5 lakh jobs was directly affected. This included labour-intensive sectors like RMG and tobacco products.

The Federation of Indian Chambers of Commerce and Industry Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (FICCI CASCADE) released the study report, titled ‘Impact of Smuggling on Indian Economy and Employment’ during its annual flagship event MASCRADE 2019 on September 26-27 in New Delhi.

The study was conducted by Thought Arbitrage Research Institute (TARI).

While unemployment is on a four-decade high in the country, the estimated livelihood opportunity lost in the economy is about 16.36 lakh because of the estimated smuggling in these five industries because of backward linkage and multiplier effects of these industries, the report said.

Around 11.35 lakh job opportunities were lost because of backward linkage and multiplier effects, i.e, industries that are ancillary or are indirectly linked via production process to these sectors as finished products were smuggled into India.

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