Illicit trade undermines consumer trust, economic integrity: Pralhad Joshi

At a time when India is witnessing rapid economic expansion, reshaping consumption patterns and market dynamics, Minister of Consumer Affairs Pralhad Joshi on Wednesday said illicit trade, which he described as a shadow economy, is undermining consumer trust and economic integrity.

At a time when India is witnessing rapid economic expansion, reshaping consumption patterns and market dynamics, Minister of Consumer Affairs Pralhad Joshi on Wednesday said illicit trade, which he described as a shadow economy, is undermining consumer trust and economic integrity.

In a video address at a seminar organised by FICCI CASCADE, Pralhad Joshi said, “Smuggling and counterfeiting are far from victimless crimes. They expose consumers to unsafe, substandard, and even toxic products, undermining honest businesses and eroding government revenues that could otherwise be invested in public welfare and infrastructure.”

Pointing to initiatives such as the Central Consumer Protection Authority, the National Consumer Helpline, and the Jago Grahak Jago campaign as key pillars in empowering citizens, he said, “The objective is not just consumer protection, but consumer prosperity.”

Calling for a broader coalition, he said, "When a product is fake, it is not just a business loss, but it is a betrayal of consumer trust. Combating this requires shared responsibility across government, industry and society," he added.

In her inaugural address, Nidhi Khare, Secretary, Ministry of Consumer Affairs, Food and Public Distribution, said with India emerging as the world’s fourth-largest economy consumer protection has evolved from awareness-building to a technology-enabled system. “From ‘Jago Grahak Jago’ to AI-driven grievance redressal, we are building a system that is faster, more efficient, and transparent,” she added.

Highlighting improvements in grievance redressal, she said resolution timelines have come down from 63 days to around 21 days, and in some online cases even within 72 hours.

The secretary also said while the e-commerce platforms operate at scale and require continuous regulatory engagement, they are also increasingly stepping up through measures such as delisting and stronger monitoring, which is aimed at combating counterfeit products.

Dr Ashwani Mahajan, National Co-Convener, Swadeshi Jagran Manch, who also took part in the seminar, said that tackling illicit trade requires strong and sustained political will, decisive policy interventions, such as demonetisation, were steps that have previously demonstrated how determined action can disrupt counterfeit and illicit ecosystems. He stressed the need to strengthen enforcement mechanisms, particularly at the borders, stating that gaps in customs oversight continue to enable the entry of illicit goods into the domestic market.

Senior policymakers, judicial leaders, enforcement officials, industry representatives, and consumer organisations were part of the seminar, who brought in views on the growing threat of illicit trade and the need for stronger consumer-centric frameworks.

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