{"id":262439,"date":"2023-09-30T19:01:26","date_gmt":"2023-09-30T13:31:26","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=262439"},"modified":"2023-09-30T19:01:26","modified_gmt":"2023-09-30T13:31:26","slug":"as-illicit-trade-booms-seizure-mount","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/as-illicit-trade-booms-seizure-mount\/","title":{"rendered":"As illicit trade booms, seizure mount"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cAs illicit trade booms, seizure mount: 3.5 tonnes of gold, 18 crore cigarette sticks and 90 tonnes of heroin caught in FY23<\/strong>\u201d published in The Indian Express <\/strong>on 30th<\/sup> September 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS 3 \u2013 Internal Security \u2013 Linkages of Organized Crime with Terrorism<\/strong><\/p>\n

Relevance: <\/strong>Findings of the report related to organized crimes in India<\/p>\n

News: <\/strong>A report titled \u2018Hidden Streams: Linkages Between Illicit Markets, Financial Flows, Organised Crime and Terrorism\u2019<\/strong> has been released recently by FICCI CASCADE.<\/p>\n

What are the key findings of the report?<\/strong><\/h2>\n

Illicit Financial Flows \u2013 Value Gap India (2009-2018):<\/strong> India has faced significant financial losses from misinvoiced imports and exports, with import misinvoicing alone causing a $9 billion loss in government tax revenue.<\/p>\n

Additional losses come from uncollected value-added tax (VAT), customs charges, and corporate income tax.<\/p>\n

Between 2009 and 2018, misinvoicing caused a total value gap of over $674.9 billion, leading to significant revenue losses to the government.<\/p>\n

Terror and Crime in India: Economic Impact of Violence for India: <\/strong>India spends a lot of money on fighting terrorism and crime because the country is facing a growing number of security threats. In 2021, it spent $1170 billion at PPP, equivalent to 6% of its GDP.<\/strong><\/p>\n

Approximately 80% of these expenditures<\/strong> are dedicated to security measures. The report predicts that as India’s economy expands, the expenses associated with addressing terrorism and crime will also rise.<\/p>\n

Organised Crime and Illegal Economy in India:<\/strong> As per data from the Global Organized Crime Index (2021), India’s organized crime actors have a relatively low aggregate score<\/strong> of 4.3, compared to the global benchmark of 5.2 among 122 countries.<\/p>\n

However, India’s criminal networks score is higher at 6, exceeding the 5.8 average<\/strong> due to their widespread involvement in illegal activities, including drug and human trafficking, as well as the illegal wildlife trade.<\/p>\n

Further, India’s overall illegal economy<\/strong> scores is at 6.3, surpassing the 5-country average among 122 surveyed. (Chart 1)<\/strong><\/p>\n

This implies that India has fewer criminal actors but a wider involvement in illegal activities like drug and human trafficking, as well as the illegal wildlife trade.<\/p>\n

Drug Economy in India:<\/strong> India’s proximity to major drug-producing regions like the Golden Triangle and Golden Crescent has led the transportation and distribution of controlled substances.<\/p>\n

In recent years, drug trafficking in India has surged<\/strong>, with over twice as many drug seizures in 2014-2022 compared to 2006-2013. The report identified cannabis as the prevalent drug in India<\/strong> along with synthetic drugs and heroin surpassing the global average.<\/p>\n

What lies ahead?<\/strong><\/h2>\n

Central Board of Indirect Taxes and Customs Chairman<\/strong> Sanjay Kumar Agarwal stressed that combating illicit trade, including counterfeiting, smuggling, and tax evasion, is vital for preserving India’s economic stability.<\/p>\n

\"\"<\/p>\n

Chart 1<\/strong><\/p>\n

Source:<\/strong> The Indian Express<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cAs illicit trade booms, seizure mount: 3.5 tonnes of gold, 18 crore cigarette sticks and 90 tonnes of heroin caught in FY23\u201d published in The Indian Express on 30th September 2023. Syllabus: GS 3 \u2013 Internal Security \u2013 Linkages of Organized Crime with Terrorism Relevance: Findings of the… Continue reading As illicit trade booms, seizure mount<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10500,406],"class_list":["post-262439","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-express","tag-internal-security","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/262439","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=262439"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/262439\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=262439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=262439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=262439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}