With the process of economic liberalisation having gathered momentum there have been significant changes in the nature of smuggling and tax evasion. While there has been reduction in conventional smuggling due to liberalisation of import regime and reduction in rates of duty, there is no respite in commercial frauds by way of misdeclaration/undervaluation of imported goods and misuse of export promotion schemes. Further, we now face an increased threat of smuggling of narcotic drugs, foreign currency, arms and explosives etc. due to growing nexus between smugglers and anti-national elements. Problems such as international terrorism, narco-terrorism, money laundering, IPR violations, cyber crimes, import of hazardous substances etc. will occupy centre stage in the future as the emerging global threats. There are also issues like dumping of goods which cause more concern to developing economies like India and will, therefore, engage attention of the policymakers and enforcement agencies alike.
Economic crimes in India, like in other countries, are linked to several other offences, or even organised
crimes, having bearing on national security. A
greater degree of sophistication is being noticed in
the activities of smuggling, tax evasion and
commercial frauds and there is a growing recognition
in the world that the economic offences are, many
times, part of other serious crimes posing serious
threat to the security of the nation. Any doubts on
this score have been dispelled by the events of Sept
11 and Dec 13.