Ahmedabad: Signalling the scale of smuggling operations in Gujarat, the Ahmedabad Customs recently seized Rs 163 crore of smuggled goods, including 8 million counterfeit cigarettes, psychotropic substances, and luxury watches. The data was revealed by the chief commissioner of customs Ahmedabad zone, Pranesh Pathak, at a seminar conducted in the city on Monday.“As India’s economy grows, it is becoming a bigger target for global smuggling networks. These crimes threaten public health, national security, and investor confidence,” said Pathak.The announcement comes alongside new data from FICCI’s anti-smuggling arm CASCADE, which pegged the size of India’s illicit trade economy at Rs 7.98 lakh crore in FY23 in a report released by them. The five sectors most affected are FMCG (packaged foods), FMCG (personal and household care), alcohol, tobacco, and textiles and apparel. In fact, textiles and apparel alone accounted for over Rs 4 lakh crore of this, followed by FMCG products, alcohol, and tobacco, the report suggests.Experts at the seminar pointed to punitive taxes as a key driver. “Smuggling thrives on cost arbitrage created by high indirect taxes and regulatory gaps. When duties on products like tobacco, liquor, and gold are significantly high, it creates strong incentives for illegal trade, undermining legitimate businesses and eroding govt revenues. The disparity between legal and illegal market pricing not only distorts fair competition but also exposes citizens to spurious goods, which can become a grave public health issue. Tackling this issue requires a balanced tax policy along with robust enforcement and greater inter-agency coordination,” said P C Jha, former chairman, Central Board of Indirect Taxes (CBIC).Pathak said enforcement was stepped up across land, sea, and air routes. “Recent seizures show just how aggressive and organised these networks have become,” he said, referring to the Godhra Customs operation involving counterfeit cigarettes worth over Rs 150 crore.