India’s Gold Smuggling Rebounds After Import Duty Hike, WGC Warns Grey Market Is Hurting Formal Trade - Tekedia

India’s gold import duty hike has widened the gap with smuggled prices, making illegal inflows more attractive.

The World Gold Council says formal imports have fallen and compliant jewelers are being hurt as the grey market grows.

Seizures of smuggled gold have increased, and industry estimates warn illicit inflows could rise again.

The policy may weaken tax collection and add pressure to India’s trade balance even as jewelry demand softens.