India's 6% to 15% gold import duty fuels smuggling surge
India recently bumped up gold import duty from 6% to 15%, and that's sparked a big rise in smuggling, say market experts.
Much of the illegal gold is coming from Gulf countries and gets sold here at a hefty discount, up to ₹8 to ₹10 lakh less per kilogram than regular prices.
The trick? Passengers wear gold and slip through airport green channels without declaring it.
Mumbai customs seize over ₹4.19cr gold
Smuggling isn't new: after the 2013 duty hike, unofficial imports shot up seven times in just a year (World Gold Council).
Now, smugglers are using routes via Bangladesh and Nepal, with hotspots like Maharashtra, Tamil Nadu, Gujarat, and West Bengal seeing more cases.
Mumbai customs recently nabbed two passengers from Dubai carrying gold worth over ₹4.19 crore.
Experts warn that high duties plus Goods and Services Tax (GST) keep official prices high and help fuel this gray market, and once these networks are set up, they're tough to break down even if taxes drop later.