Phase IFoundation
Background
Overview
Understanding illicit trade is crucial for UPSC as it impacts India's economic security, internal security, revenue generation, and the effectiveness of its trade policies and international commitments. It highlights challenges in border management and enforcement.
Illicit trade refers to the illegal production, distribution, and sale of goods and services, often involving smuggling, counterfeiting, and tax evasion. Smuggling specifically involves the illegal movement of goods across national borders to avoid duties, prohibitions, or other regulations, undermining legitimate commerce and national security.