Explainer: Why gold smuggling is booming and seizures are growing
After India doubled import duties on gold earlier this year, duty-evaded gold has become far cheaper in comparison. As a precious metal, even a tiny amount of gold earns a fortune for the smuggler.
Gold smuggling networks have resurfaced following a recent hike in import duty, leading to an increase in seizures by the Directorate of Revenue Intelligence (DRI). In the first nine months of the current financial year, the agency has intercepted approximately 205 kilograms of gold of foreign origin. Despite the prevalence of digital surveillance, smuggling continues to flourish due to the high value of gold and the significant price difference between legally purchased and smuggled gold.
This resurgence in smuggling has not only undermined the government's efforts to control imports and conserve foreign exchange but also exposed new smuggling routes, techniques, and facilities. Dhirendra Kumar, a seasoned policy reporter with over two decades of experience, has reported on this issue, shedding light on the structural policy shifts and their impact on India's economy.
Written by urgent.news from Live Mint's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
