Network-Based Disruption: India’s Technology-Led Strategy Against Transnational Smuggling
SDG 8: Decent Work and Economic Growth | SDG 16: Peace, Justice and Strong Institutions
Ministry of Commerce and Industry | Central Board of Indirect Taxes & Customs | Ministry of Finance
At FICCI CASCADE’s 5th Anti-Smuggling Day, the Central Board of Indirect Taxes and Customs (CBIC) reaffirmed its commitment to a technology-driven, network-based disruption strategy against transnational smuggling. With illicit markets in India estimated at nearly ₹8 lakh crore in 2022–23, smuggling has evolved into a highly organized, commodity-agnostic economic crime with direct implications for national security. To counter this, India has established 42 Mutual Customs Cooperation Agreements (MoUs), with 21 more under negotiation, aimed at targeting financial flows and international linkages. Seizures in the first three quarters of the current financial year include approximately 500 kg of gold, 150 million illicit cigarette sticks, and significant quantities of narcotics like hydroponic cannabis and cocaine, alongside the detection of over 100 wildlife trafficking cases.
Key Pillars of the Enhanced Enforcement Architecture The CBIC and FICCI CASCADE have identified several critical foundational pillars for dismantling illicit trade ecosystems:
Transition to Network-Based Disruption: Shifting from event-based seizures to targeting the financial layering, logistics enablers, and international syndicates that sustain smuggling.
AI-Powered Surveillance and Analytics: Utilizing AI-driven image analytics and expanded container scanning at major ports to identify suspicious consignments before they enter the domestic market.
Mutual Customs Cooperation: Leveraging 42 active MoUs to share intelligence and promote legal trade through strong partnerships among compliant nations.
Non-Intrusive Examination Systems: Implementing advanced risk-based inspections and advanced cargo screening as the first line of defense at the country’s borders.
Deterrence and Structural Reform: Combining enforcement with GST simplification and customs reforms to reduce the economic incentives for illicit trade and dismantle financial structures.
What is “Network-Based Disruption” in customs enforcement? Network-based disruption refers to an enforcement strategy that moves beyond merely intercepting specific illegal consignments to targeting the entire organizational structure of a smuggling syndicate. This involves analyzing and dismantling the underlying financial flows, logistics providers, digital anonymity tools, and cross-border coordination mechanisms that allow illicit trade to persist. By focusing on the “network” rather than the “event,” authorities aim to cause systemic failure in the criminal ecosystem rather than just a one-time seizure.
Policy Relevance
The February 2026 Anti-Smuggling Day observations represent a transition from border-gate policing to a “Digital-First” intelligence-led enforcement model. By institutionalizing technology-led disruption, the CBIC and DRI are providing a roadmap to recover the nearly 15.96 lakh legitimate jobs lost to illicit trade while safeguarding national economic stability.
Safeguarding National Security: Targeting “dual-use goods,” arms, and drones through AI analytics directly aligns with the Ministry of Home Affairs’ mandate to prevent the misuse of legitimate trade channels for terrorism.
Boosting Formal Employment: Reducing the ₹7.85 lakh crore illicit market provides a direct stimulus to the formal manufacturing sector, potentially recovering lakhs of jobs in sectors like FMCG and electronics.
Strengthening Global Leadership: India’s push for a UN-recognized International Anti-Smuggling Day positions the country as a global champion for ethical trade and transnational crime cooperation.
Leveraging Digital Public Infrastructure (DPI): Integrating GST data with customs risk-management systems creates a transparent “Compliance-First” environment that reduces the incentives for repeat offenders.
Relevant Question for Policy Stakeholders: How can the Ministry of Commerce and Industry utilise Digital Public Infrastructure (DPI) to create a public-facing portal where consumers can instantly verify the 'Legitimate Import Status' of high-value goods like electronics and gold?
Follow the full news here: FICCI: India Deepens International Enforcement Network