Drive against fake products will help curb fiscal deficit: Maken
New Delhi: Drive against counterfeiting and smuggling can generate huge revenue for the exchequer and help contain fiscal deficit, Minister of Housing and Urban Poverty Alleviation Ajay Maken said Monday. Addressing an event organised here by the Federation of Indian Chambers of Commerce and Industry (FICCI), Maken said counterfeiting and smuggling were invisible enemies and should be eliminated.
"If counterfeiting and smuggling were checked, it can help in curbing fiscal deficit," He said. The event was organised by FICCI committee against smuggling and counterfeit activities destroying the economy (FICCI-CASCADE) in association with Management Interaction Cell of Shaheed Sukhdev College of Business Studies, University of Delhi.
Fiscal deficit is one of the major problems facing the Indian economy. The fiscal deficit is expected to remain at 5.2 percent of the country's gross domestic product (GDP) in the financial year ending March 31. The government targets to bring it down to 4.8 percent of the GDP in the next fiscal.
According to a study conducted by FICCI-CASCADE, sale of counterfeit and smuggled products and tax evasion in seven key sectors that include auto, fast moving consumer goods, alcohol and tobacco, resulted in Rs.26,190 crore ($4.85 billion) loss to the exchequer in 2012. "The report released by FICCI-CASCADE highlighting the impact of counterfeit and smuggling on seven key sectors of the economy and the loss to government is a right step in creating awareness," Maken said.