Cheaper gold by Rs 10 lakh - 15% import duty prompts smuggling wave in India

Key points

• The government's recent hike in gold import duty has fuelled a surge in smuggling, with illicitly imported gold reportedly being sold at discounts of up to Rs 10 lakh per kilogram, creating a significant price gap with legally imported bullion.According to industry participants cited by ET, gold brought into the country through unofficial routes is currently available at a discount of Rs 8-10 lakh per kilogram when compared current domestic market prices.
• Much of this gold is said to come from the Middle East and is carried into the country by passengers arriving from Gulf nations without being declared at airports.India Bullion & Jewellers Association national secretary Surendra Mehta told the financial daily that a significant portion of such gold is brought in by travellers who wear the jewellery and pass through airport green channels.“Market observers warned that the situation could mirror developments seen after an earlier duty hike in...