Trust is invisible foundation of every healthy economy: Ram Nath Kovind

Ram Nath Kovind, Former President of India, on Thursday, while addressing the FICCI-CASCADE ‘MASCRADE 2026’ (Movement Against Smuggled and Counterfeit Trade), said that trust is the invisible foundation of every healthy economy and smuggling, counterfeiting gradually erode that trust. “Consumers trust manufacturers, manufacturers trust the supply chain, investors trust their institutions and their regulators. Smuggling and counterfeiting gradually erode that trust. The entire economic system is based on trust. Therefore, the movement against counterfeiting and smuggling is about protecting the trust in the systems and institutions that allow an economy to function,” he added.

Kovind further stated that in today’s world, illicit trade has taught us a lesson that a supply chain is only as secure as its weakest point. Highlighting the importance of the conference’s theme - ‘One World, One Fight: Eliminating Counterfeiting and Smuggling Through Collective Action’, he said that the theme of this conference has a sense of resonance with India’s largest vision for the world. “Our Prime Minister Narendra Modi has articulated the principle of one earth, one family, one future as a guiding commitment for India. There is a natural connection between that vision and the idea of one world, one fight. Both remind us of a simple truth, our challenges are interconnected and so are our destinies,” he noted.

Kovind added that India today is at an important moment in its economic journey. “We are witnessing transformation across manufacturing, infrastructure, technology, entrepreneurship and global trade. Indian enterprises are increasingly becoming part of global value chains, while our digital economy is creating new opportunities for businesses and consumers. With this growth comes a responsibility to protect the ecosystem that makes such growth possible,” he emphasised.

“There are three ideas about India that we must defend together,” Kovind said. “The first is of Bharat as Vishwaguru; second is India as a global centre of enterprise, manufacturing and innovation, reflected in our aspirations for Make in India and Atmanirbhar Bharat and the third idea is of Indian citizen as a discerning and empowered consumer, who has every right to expect that what is purchased is genuine, safe and what it claims to be. Illicit trade undermines all three,” he highlighted.

Speaking on the role of technology in fighting the menace of illicit trade and smuggling, Kovind said that technology offers us powerful new tools. “Data analytics can help identify unusual patterns, AI can help agencies assess risks more intelligently. Digital systems can improve transparency and make enforcement more effective. But technology by itself is not enough. We need technology, but we also need inter-agency and international cooperation in intelligence sharing,” he added.

Vivek Chaturvedi, Chairman, Central Board of Indirect Taxes and Customs (CBIC), said that the illicit economy is no longer simply about bringing prohibited goods across the border. It is increasingly about creating an entire parallel supply chain using legitimate logistics infrastructure, documentation, financial channels, and digital platforms to disguise such illicit activity.

Anil Rajput, Chairman, FICCI CASCADE, said, “The fight against illicit trade is not merely an economic imperative, nor should it be viewed simply through the lens of revenue loss. It is a security imperative. It is a governance imperative and, ultimately, an imperative for peace and stability of nations across the globe.” Anant Swarup, Secretary General, FICCI, said that illicit trade networks are increasingly sophisticated, technology-enabled, and borderless. Their impact goes far beyond revenue losses, undermining investments, employment, consumer safety, innovation, and fair competition. “For a fast-growing economy like India, trusted markets and secure supply chains are indispensable. Our response to illicit trade must therefore go beyond seizures alone,” he added.

Kapil Hathi, Member, FICCI CASCADE and CFO, Amazon India, said that the sophistication of counterfeiters has grown exponentially, and the only way to stay ahead is to invest in advanced technology and tools that can detect what the human eye cannot.

FICCI-KPMG report on ‘Illicit Trade in India: Economic Impact, Enforcement Challenges and the Path Forward’ was released.