Increasing Smuggling Trends in India: A Report by the Directorate of Revenue Intelligence (GS Paper 2, Government Policies)
Context
- The Directorate of Revenue Intelligence (DRI) has recently released a comprehensive report revealing a notable surge in smuggling activities across India.
- This report highlights the growing challenges in combating illicit trade, particularly in drugs, contraband cigarettes, illicit currency, and wildlife products.
Key Findings of the DRI Report
- Rising Drug Seizures: In FY24, the DRI recorded a substantial rise in drug seizures, with cocaine smuggling increasing by 9%. The amount of cocaine seized more than doubled compared to the previous year, while methamphetamine seizures saw a significant rise, particularly in northeastern states such as Assam and Mizoram.
- Contraband Cigarettes: During the first half of FY25, contraband cigarette seizures surged by 19%, with Dubai emerging as a primary transit point for smuggling. These cigarettes are often routed through free trade warehousing zones in the UAE.
- Illicit Currency Seizures: The DRI reported seizing Rs 13.8 crore in foreign currency in FY25’s first half, surpassing the total of Rs 12.4 crore for FY24. This reflects the growing issue of illegal financial flows into the country.
- Gold Seizures: Although gold seizures declined by 9% in FY24, they remain a persistent concern, particularly with land routes from Myanmar, Bangladesh, and Nepal accounting for over half of these seizures.
- Wildlife Trafficking: The DRI also seized significant quantities of wildlife items, including 53.5 kg of elephant tusks, underscoring the ongoing illegal wildlife trade in the country.
About the DRI
- The DRI, established on December 4, 1957, is India’s primary agency for combating smuggling and enforcing Customs and indirect tax laws.
- It operates under the Central Board of Indirect Taxes & Customs and has evolved to address various threats, including money laundering, counterfeit currency trafficking, and terrorism financing.
- In FY23-24, the DRI reported seizures valued at approximately Rs 3,573 crore.
Challenges in Combating Smuggling
- Corruption and Collusion: Smuggling syndicates often take advantage of corrupt practices, which undermine enforcement efforts and complicate legal processes.
- Misuse of Trade Agreements: Smugglers exploit free trade agreements to misdeclare goods, making it harder for authorities to detect illicit products and undermining the economy.
- Technological Advancements by Smugglers: The increasing use of cyber technologies, including the dark web and cryptocurrencies, presents new challenges for enforcement agencies trying to combat drug trafficking and other forms of smuggling.
- Geographical and Enforcement Challenges: India’s extensive borders with several countries, coupled with varying levels of enforcement across states, makes it difficult to control smuggling comprehensively.
Actionable Strategies for Tackling Smuggling
- Strengthening Law Enforcement: Enhancing cooperation between national and international law enforcement agencies is critical to improving anti-smuggling efforts. Capacity-building programs are being implemented by the Ministry of Home Affairs to equip agencies to handle trafficking and smuggling.
- Regulatory Improvements: Strengthening regulations around free trade zones and ensuring stricter monitoring can curb the smuggling of contraband goods. Regular audits and inspections are essential to enforce compliance.
- Investment in Technology: The use of advanced technologies like drones, surveillance systems, and data analytics can help improve detection capabilities at borders and ports. Countries like Australia have already implemented such systems to bolster enforcement.
- Public Awareness Campaigns: Public education programs can encourage citizens to report suspicious activities, creating a community-driven approach to combating smuggling. Campaigns such as “Crimestoppers” in the UK have shown success in involving the public in the fight against illicit trade.
Conclusion
- In conclusion, addressing smuggling in India requires a multifaceted approach, combining enhanced law enforcement, technological innovations, and public awareness.
- As smugglers increasingly adopt sophisticated tactics, the DRI’s role in curbing these activities remains critical to protecting India’s economy and national security.
