Monday, February 25, 2013

Chief Guest at the National Consumer Rights Week Celebrations 20.12.12


SPECIAL ADDRESS OF PROF. K.V. THOMAS, HON’BLE MINISTER OF STATE (I/C) OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION AS THE CHIEF GUEST AT THE NATIONAL CONSUMER RIGHTS WEEK CELEBRATION BY FICCI COMMITTEE AGAINST SMUGGLING AND COUNTERFEITING ACTIVITIES DESTROYING THE ECONOMY (CASCADE) IN COLLABORATION WITH THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION ON THRUSDAY, THE 20TH DECEMBER, 2012 AT FICCI FEDERATION HOUSE, NEW DELHI.

Ms. Naina Lal Kidwai, President, FICCI, Dr. A. Didar Singh, Secretary General, FICCI, Shri Pankaj Agrawala, Secretary, Department of Consumer Affairs, Government of India, eminent experts, civil society members, the business community representatives, distinguished guests, friends from the media, ladies and gentlemen:

2.           First of all, I wish to thank the FICCI for celebrating the National Consumer Rights Week through panel discussions, involvement of students for creating awareness among them on consumer rights and also for their particular focus on the issues of smuggling and counterfeiting activities destroying the national economy and their impact on consumer rights.  I congratulate the FICCI on their proactive efforts in empowering the consumers, because Government alone may not be able to assure a vibrant consumer movement, and it is only through private and voluntary initiatives such as this one that the Government can ensure that the consumer is made aware of his rights and responsibilities. 

3.           All of you would agree with me that in a country like ours, the success of the consumer movement would depend largely upon sustained consumer awareness and in making consumers vigilant about their rights and responsibilities.  Our society gets guided by the market force.  The transition is predominantly from ‘sellers’ market’ to a ‘buyers’ market’ where choice exercised by consumer is influenced by the level of consumer awareness achieved.  I would like to begin by stressing on one important point – that of ‘consumer protection,’ as a significant issue contributing to the economic growth of a country.  A market that is highly competitive is of utmost importance for the healthy growth of economy and is beneficial to the consumer in that the consumer has a wide variety of products to choose from.  such a competitive market in a fast developing country like ours is also prone to spurious goods and inferior services entering the market place to cheat the unsuspecting and ill-informed consumers.  Therefore,   protection of consumer interests becomes a moral responsibility of the State.  This can only be accomplished through setting up quality specifications and safety compliances for goods and services and by establishing proper, effective and easily accessible mechanisms to redress grievances of the consumer.  Amongst the various efforts undertaken, consumer information and education will remain the two most important areas of concentration as they are the most effective means to counter the unscrupulous designs and malpractices of the market.  Consumer education is a life-long education to contribute to basic survival needs of all age groups. But among the consumers, the disadvantaged groups, particularly vulnerable to the economic and social inequalities, the low-income earners, the unemployed, the differently-abled, the immigrant work force – all they need our special attention.  “Jago Grahak Jagois an innovative attempt at reaching these very segments of the society through the media, especially the electronic media. 

4.           Completion of 25 years of implementation of Consumer Protection Act provides us with an opportunity to assess what has been achieved and what still needs to be done.   A range of reforms in the Consumer Protection Act has been proposed by the Ministry of Consumer Affairs that will have an effect on the laws administered by the States.  These changes will further benefit the consumers and speed up the grievance-redressing processes. 

5.           Now, coming to your focus on smuggling and counterfeiting activities destroying our economy, if I may recall, I did participate in a campaign of FICCI in May, 2012 which was against smuggling and counterfeiting – then too, you involved children in your campaign.  When children are made aware of the ill-effects of smuggling and counterfeiting activities on the economy, this will have a deep impact, as children symbolize the future of a country.  Counterfeit and pirated products are being produced and consumed in virtually all economies, with Asia emerging as the single largest producing region – the reason being their availability at cheaper rates.  The effects of counterfeiting and piracy are more pronounced in developing economies.   The causes for its proliferation may be traced to certain facts such the transfer of world's manufacturing industries to third world countries, the growth witnessed in internet e-commerce sales, and the fact that consumers, seeking out lower-cost items leading to counterfeit articles.  Another great cause of concern to governance is that profits of counterfeiting are known to bolster organized crime and terrorist groups who pose a real threat to security in developed and developing countries alike.

6.           Fundamentally, counterfeiting hinders long term economic development. Economy-wise, counterfeiting and piracy also undermine innovation, which is important to economic growth.  The market for counterfeit and pirated products can be divided into two important sub-markets. In the primary market, consumers purchase counterfeit and pirated products believing they have purchased genuine articles. In the secondary market, consumers looking for what they believe to be bargains knowingly buy counterfeit and pirated products. The policies and measures to combat counterfeiting and piracy in the two markets differ; it is therefore important to know how much of a threat each poses when considering product specific strategies.


7.           I hope this initiative of FICCI, as the largest and the oldest apex organization of Indian business and a leader in policy thinking and change in Indian industry, will go a long way in creating awareness among the consumers on the hazards of purchasing fake products and create more interaction with enforcement authorities.  That FICCI have assembled children here to pass on the message on counterfeiting and piracy is quite apt and symbolic of their efforts in joining government agencies to create an awareness among the consumers on the ill-effects of these evils so that consumers become informed when it comes choosing the right product at the right price.  I congratulate the FICCI on their appreciable endeavour and hope our collective efforts will result in a vibrant economy which will lead to the nation prospering crossing all hurdles.

THANK YOU.