NEW DELHI: The Member of Parliament, Mr. Praveen Khandelwal on Wednesday called for a united national effort to tackle the growing threat of illicit trade, counterfeit goods and smuggled products, stating that the issue directly impacts consumers, businesses and the country’s economy.
He was addressing a national seminar titled “Confronting Illicit Trade in Modern Markets”, organised by the Federation of Retailers Association of India (FRAI) in New Delhi.
The event brought together policymakers, industry experts, law enforcement officials, legal professionals, consumer advocates and retail stakeholders to discuss the increasing spread of counterfeit and illegal products in India’s rapidly evolving retail sector.
Khandelwal Stresses Collective Responsibility
Speaking at the seminar, Khandelwal said combating illicit trade cannot be left to government agencies alone and requires active participation from every stakeholder.
“The challenge of illicit trade, counterfeit goods and smuggled products directly affects consumers, businesses and families alike. While the government is treating this issue with utmost seriousness and is committed to strengthening the legal framework, it is equally important for industry, traders and citizens to work alongside enforcement agencies,” he said.
He further highlighted the importance of technology in identifying and disrupting illegal supply chains.
“Technology can become a powerful tool in combating counterfeit products, and collective action through public-private partnerships is the key to building a transparent, accountable and trusted retail ecosystem,” Khandelwal added.
He also urged FRAI to take a more proactive role in supporting authorities by establishing dedicated mechanisms to identify illicit trade networks operating in markets.
Counterfeit Products Emerging Across Sectors
During the discussions, participants expressed serious concern over the alarming rise in counterfeit and non-compliant products being sold across multiple sectors, including food and beverages, groceries, personal care products, cosmetics, tobacco products, cigarettes, e-cigarettes, emerging nicotine delivery products, electronics and household goods.
Experts warned that the increasing circulation of such products through both traditional retail outlets and digital platforms poses significant risks to consumer safety, undermines trust in legitimate businesses and negatively impacts government revenues.
Experts warned that the spread of such products through both offline and digital channels is creating serious consumer safety concerns while weakening trust in legitimate businesses.
The proliferation of fake products is also resulting in substantial revenue losses for the government and unfairly disadvantaging honest retailers.
Small Retailers Facing Increasing Pressure
A major focus of the seminar was the growing burden on millions of small retailers who are struggling to compete against illegal operators.
Participants noted that genuine retailers comply with regulations, maintain product authenticity and remain accountable to consumers, whereas illicit networks continue to exploit enforcement gaps and monitoring loopholes.
During the event, FRAI submitted a formal representation to the Ministry of Consumer Affairs, Food and Public Distribution seeking stronger measures to combat illicit trade.
The association proposed several recommendations, including:
Stricter enforcement against illegal products
- Stronger penalties for repeat offenders
- Greater accountability for digital marketplaces
- Enhanced market surveillance and inspections
- Better coordination among enforcement agencies
FRAI Raises Concerns Over Consumer Safety
Addressing the gathering, FRAI General Secretary Vinay Kumar described illicit trade as a major threat extending beyond commerce.
“Illicit trade is no longer merely a commercial issue; it has become a serious consumer protection and livelihood concern. Counterfeit and illegally sourced products expose consumers to unsafe and substandard goods while eroding the foundations of fair competition,” he said.
He further emphasised that millions of honest retailers are finding it increasingly difficult to survive in an ecosystem where illegal products continue to circulate unchecked.
“We urge the government to strengthen enforcement mechanisms, enhance surveillance and accountability across marketplaces, and create a fair and transparent retail ecosystem that protects consumers while safeguarding the livelihoods of honest retailers,” Kumar added.
Digital Commerce Presents New Challenges
Participants also discussed the rapid growth of digital commerce and quick-commerce platforms.
While these platforms have improved convenience and accessibility for consumers, experts noted that they have simultaneously created fresh challenges in monitoring product authenticity and ensuring supply chain compliance.
The seminar stressed the need for balanced regulations that encourage innovation without compromising accountability and consumer protection.
Multi-Stakeholder Approach Essential
The event concluded with experts unanimously agreeing that a collaborative strategy involving government bodies, retailers, technology platforms, manufacturers and consumers will be critical in dismantling illicit trade networks.
FRAI reiterated that protecting consumers, preserving fair competition and safeguarding the livelihoods of millions of small retailers remain essential to building a sustainable and trusted retail ecosystem in India.
The association urged all stakeholders to work together to eliminate counterfeit products and strengthen confidence in India’s marketplaces.
