At a seminar on ‘Confronting Illicit Trade in Modern Markets’ here, several prominent personalities came together to deliberate on the issues impacting India’s retail ecosystem.
Participants expressed concern over the growing circulation of counterfeit products, illegal distribution channels and non-compliant goods across markets, while also highlighting how predatory pricing, deep discounting and unchecked expansion of certain e-commerce models are creating severe imbalances for small retailers.
Speaking at the seminar, FRAI Assam president Birendra Ch Baishya said, “Small retailers and kirana stores are not just business establishments, they are the backbone of the country’s local economy and community life. However, the increasing prevalence of unfair trade practices in modern retail markets is creating serious challenges for traditional retailers.”
If timely corrective measures are not taken, India risks damaging its traditional entrepreneurial culture that has sustained generations of self-employed families, he added.
FRAI is a body of over 1 lakh micro, small and medium retailers from across Guwahati and the Northeastern states. It also represents over 5 lakh retailer families and is known for consistently raising issues concerning their lives and livelihoods.
“We call for stronger regulatory oversight, fair competition policies and a level playing field for small retailers. We urge the policymakers to ensure measures for the complete eradication of illicit and illegal products in the online retail ecosystem,” Baishya said.BJP MLA Vijay Kumar Gupta highlighted that both illicit trade and unfair market practices are adversely affecting genuine businesses, government revenues, consumer trust and the livelihoods of lakhs of small traders across the state.
“While quick commerce and e-commerce platforms are rapidly transforming the retail landscape and making products instantly accessible to consumers, the same ecosystem is also creating serious concerns around the rapid spread of illicit trade and counterfeit products,” he added.
Flash sales, unrealistic discounting, aggressive pricing strategies and the constant push for ultra-fast delivery have created an environment where consumers are often unable to differentiate between genuine and counterfeit products, Gupta said.
State Taxes Assistant Commissioner Momshad Dinory said illicit traders and unethical sellers are increasingly exploiting rapidly expanding digital platforms to push counterfeit and non-compliant products into the market.
“They take advantage of weak monitoring mechanisms and the growing consumer obsession with deep discounts and instant availability. Consumers are gradually becoming more price-sensitive than quality-conscious, creating fertile ground for illicit trade to flourish unchecked across digital commerce channels,” he added.
FRAI Assam secretary Gauri Shankar Jaiswal pointed out that almost everything — from food products, groceries and personal care items to skincare products, electronics and even premium mobile phones worth thousands of rupees — is being delivered within minutes through quick commerce and e-commerce platforms.
“However, this extreme accessibility and race for cheaper prices are also opening dangerous entry points for banned, illegal and counterfeit products to penetrate the market at an unprecedented scale,” he added.
The seminar concluded with a collective appeal to the government, policymakers and industry stakeholders to protect the interests of small retailers and preserve India’s traditional entrepreneurial ecosystem, which continues to play a critical role in employment generation, local commerce and economic stability.