Vigilance over Vulnerability

India, on the path of rapid economic growth and deeper global engagement, is simultaneously grappling with an invisible but deeply disruptive threat—smuggling and the spread of counterfeit goods. These aren’t just economic crimes; they’re attacks on public safety, on consumer trust and on the institutions that underpin a healthy economy. Recent cases have once again revealed just how sophisticated and widespread these illicit operations have become. But the response has been firm, coordinated and quietly effective. Across agencies and borders, India is signalling that it will not cede ground.

Earlier this April, a staggering Rs 1,800 crore worth of narcotics were seized in a joint operation by the Indian Coast Guard and Gujarat Anti-Terrorism Squad off the Arabian Sea. Over 300 kg of heroin, allegedly dumped in international waters by traffickers, was recovered—a sign of just how far smugglers are willing to go to avoid detection. This operation, one of the largest in recent memory, wasn’t accidental. It was the result of precise intelligence sharing, inter-agency coordination and enhanced maritime vigilance. Meanwhile, on land, smuggling operations have been equally bold. In one widely reported case, Kannada actress Ranya Rao was intercepted at Bengaluru Airport with over 14 kg of foreign gold, worth more than Rs 12.5 crore. Further searches turned up jewellery and cash, bringing the total haul to Rs 17.29 crore. According to the Directorate of Revenue Intelligence (DRI), land routes account for 55 per cent of gold smuggling cases, while air routes account for 36 per cent. That duality highlights the challenge India faces—smugglers are adapting quickly, whether by air corridors or porous borders. Another example came on April 2, when customs officials at Trivandrum, Calicut and Cochin airports seized Rs 1.8 crore worth of gold cleverly concealed within passengers’ bodies and clothing. These operations stretch from the coastal belt to landlocked border states like Uttar Pradesh and Bihar, pointing to a well-established nexus of criminal networks, informal money markets and cross-border conduits.

At the centre of India’s response is the DRI, which has not only ramped up enforcement but broadened its mandate. During the 21st Director-General level talks with Nepal held in Kathmandu, India pressed for tighter collaboration on combating the smuggling of gold, narcotics, fake currency and banned items like e-cigarettes. The two countries committed to more timely data sharing, digitised verification and streamlined cargo monitoring—steps that will make it significantly harder for smugglers to exploit border loopholes. Nepal’s active participation in this dialogue also signals the growing strength of India’s “Neighbourhood First” policy. India accounts for two-thirds of Nepal’s exports, but beyond trade ties, this meeting demonstrated that economic cooperation and security enforcement now go hand in hand. Regional trust and technological alignment are becoming central to India’s anti-smuggling architecture. Back home, central agencies under the Ministries of Finance and Home Affairs have stepped up their efforts. Over 3,000 cases related to counterfeit currency and fake goods were registered in the first quarter of 2025. The Customs Department has deployed AI-based risk profiling at major ports like Mumbai, Kolkata and Chennai, enabling officers to flag suspicious consignments based on transaction history, origin-country trends and declared values. These systems now analyse more than 70 per cent of declared imports. The results of this crackdown are becoming visible. In March alone, counterfeit goods worth Rs 110 crore were destroyed in Maharashtra and Tamil Nadu by the Enforcement Directorate and Economic Offences Wings. These included fake auto parts, pharmaceuticals, electronics and apparel—all bearing knockoff trademarks. Each destroyed item represents not just lost revenue, but also a disruption to criminal operations that fund further illegal trade.

But enforcement alone won’t solve the problem. Consumer awareness and corporate accountability are emerging as key pillars of the national effort. Campaigns led by FICCI-CASCADE and the Advertising Standards Council of India (ASCI) are working to educate the public on how to spot fakes and where to report them. Integration with digital grievance platforms like CPGRAMS and the Government e-Marketplace (GeM) has also made it easier for consumers and suppliers to flag counterfeit items in real-time. These efforts, while substantial, are part of a larger strategy: to create an ecosystem where smuggling and counterfeiting cannot thrive. India isn’t just intercepting criminals—it’s shrinking the space they operate in, through better diplomacy, smarter data systems and public participation.

Antisocial elements, with a specific focus on the smuggling network, pose a persistent threat to national security by undermining the rule of law, destabilising border regions, and facilitating the flow of illicit goods that fund organised crime and, at times, extremist activities. Their operations not only erode economic integrity through tax evasion and counterfeit trade but also jeopardise public safety by enabling the circulation of narcotics, weapons, and unregulated commodities. Infiltrating critical entry points and exploiting technological loopholes, these networks compromise the nation’s internal stability and challenge enforcement agencies. Addressing this threat is not merely a matter of law enforcement but a strategic imperative for preserving sovereignty and ensuring long-term national resilience.

The road ahead will not be without challenges. As long as there’s demand, smugglers and counterfeiters will try to adapt. But the message from the Indian state is increasingly clear: this won’t be a battle fought alone, and it won’t be a battle fought passively. From coastal waters to land borders, airport terminals to e-commerce platforms, India is putting in place the scaffolding of a more secure, accountable economy. In doing so, it is not only protecting revenue—it is defending consumer trust, business integrity and the rule of law. For a nation of India’s scale and ambition, this is not just a law enforcement priority—It is a development imperative rooted in the safeguarding of national security. And while the nature of adversaries may evolve over time, the government’s unwavering commitment to protecting the nation’s security interests remains resolute. In this fight, the nation has chosen vigilance over vulnerability — these are just the early signs of success, but we have a long journey to traverse.

The writer is President, ITC Corporate Affairs. Views expressed are personal