India's Gold Smuggling Surge: The Hidden Impact of Tariff Hikes

India has witnessed increased clandestine gold inflows following a substantial hike in import tariffs, reports the World Gold Council. With tariffs elevated to 15%, grey-market operations are flourishing, adversely affecting organized businesses. Despite government seizures, illegal imports might surpass 100 tons in 2026 as demand and smuggling activities progress.

According to the World Gold Council, India's underground gold trade has intensified this year due to a rise in import tariffs, impacting formal sectors significantly.

In efforts to curb consumption and trade deficit, India doubled import duties. This has resulted in a widened margin for grey-market operators, disrupting organized trade.

Despite increased seizures by authorities, the surge in illegal imports persists, with industry insiders speculating a potential peak in smuggling activities in the near future.