The central government is estimated to have lost 58,521 crore in taxes in the year 2019 -- 20 due to illegal trade in goods in 5 key industries. Ficci's report, titled 'Illicit Markets: A Threat to Our National Interests' by FICCI's Committee Against Smuggling and Counterfeiting Activities Destroying the Economy, identified FMCG mobile phone, tobacco products and alcohol as the most affected industries, with the size of illicit markets in these industries at a little over Rs 2.60 lakh crore for the year 2019 -- 20. The FMCG industry alone accounted for 75% of the total illicit value of goods in five key industries. Nearly 49% of the total tax loss in these industries is due to tobacco products and alcoholic beverages. The report said that the multiplier is higher the effect it has on the economy. The total illicit market size of Rs 2.60 lakh crore is for FMCG industry household and personal goods and packaged foods, which constitute over 1.97 lakh crore. This is followed by alcoholic beverages at Rs 23,466 crore, tobacco products in Rs 22,930 crore and mobile phones at Rs 15,884 crore. The report highlights that to deal with the menace of illicit markets in India, addressing the demand and supply gap, a reduction of tariffs to reduce tax arbitrage, creation of a conducive environment for innovation, and better international coordination and cooperation are some of the ways forwards. It said that cooperation of all stakeholders and concerted efforts of the government, industry, consumers, and international bodies are needed to achieve the challenging and mammoth task of reducing illicit markets.