NEW DELHI – Gold smuggling into India has increased in recent weeks as the country prepares for Dhanteras and Diwali, according to government and industry sources.
After import duties on gold were reduced to 6% from 15% last year, smuggling had fallen, but the recent spike in global prices and limited supply has renewed illicit activity. Customs and Directorate of Revenue Intelligence (DRI) officials reported multiple attempts intercepted at Indian airports.
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Gold prices in India hit a record 128,395 rupees per 10 grams on Thursday, up 67% this year, making smuggling highly profitable. Smugglers can now earn margins exceeding 1.15 million rupees per kilogram, bypassing import duties and local sales tax.
Local dealers say banks are struggling to meet demand, forcing premiums as high as $25 per ounce over official prices—the highest in over ten years. In the 2024/25 fiscal year, Indian authorities registered 3,005 cases of gold smuggling, seizing 2.6 metric tons of the metal.