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Agencies report 30% rise in gold smuggling at Hyderabad airport after duty hike

Customs officials at Hyderabad's Rajiv Gandhi International Airport detained two Indian passengers on June 25, confiscating 2.271 kg of gold worth around ₹3.36 crore. This uptick in gold smuggling comes in response to the Indian government's hike in import duties from 6% to 15%, which has made illegal activities more appealing for organized syndicates.

BRIC Team
BRIC Team
Jun 26, 2026 · 2 min read · 4 views
Agencies report 30% rise in gold smuggling at Hyderabad airport after duty hike

Key Takeaways

  • The Indian government raised import duty on gold from 6% to 15%, prompting a surge in smuggling operations at airports.
  • On June 25, Customs seized 2.271 kg of gold worth ₹3.36 crore from two passengers arriving from Kuala Lumpur.
  • A U.S. citizen was caught on May 15 with 3.565 kg of gold worth over ₹5.5 crore hidden in trouser pockets and a body belt.
  • Smuggling networks are increasingly using ordinary passengers and airport insiders, adapting strategies based on fluctuating gold prices.
  • Customs officials are enhancing surveillance techniques, focusing on passenger profiling and behavioral analysis to combat smuggling.

Smuggling operations at Hyderabad's Rajiv Gandhi International Airport have surged, particularly in gold, following a significant increase in import duties and rising domestic prices. Enforcement agencies,including the Directorate of Revenue Intelligence (DRI) and Customs, have observed a marked uptick in smuggling attempts, especially from Gulf nations and parts of Africa.

The Indian government raised the import duty on gold and silver from 6% to 15% to curb overseas purchases and alleviate pressure on foreign exchange reserves. As a result,the widening gap between international and domestic gold prices has made smuggling increasingly lucrative for organized syndicates. An officer involved in anti-smuggling operations noted,“Gold is very much under our radar right now because interception patterns clearly indicate an increase in attempts after import duty changes and rise in prices.”

Recent seizures underscore this trend. On June 25,Customs officials arrested two Indian passengers arriving from Kuala Lumpur,confiscating 2.271 kg of 24-carat gold valued at approximately ₹3.36 crore. The gold was ingeniously concealed in paste form within specially stitched pouches along the waistline of their trousers. Earlier,on May 2,DRI officials seized 3.5 kg of foreign-origin gold worth over ₹3.45 crore at same airport, leading to arrest of three individuals, including two airport ground staff allegedly involved in the smuggling operation.

Gold smuggling tactics have evolved, with officials noting similar concealment methods across various airports in India . For instance,on May 21, Customs at Delhi's IGI Airport seized 396 grams of 24K gold dust hidden in commercial chocolate packets from a passenger arriving from Riyadh. Another significant interception occurred on May 15,when a U.S. citizen was caught with 3.565 kg of gold, including 115 bars worth over ₹5.5 crore,stitched into trouser pockets and a specially designed body belt.

In February,profiling based on the Advance Passenger Information System led to the interception of a passenger from Jeddah, who had 44.40 grams of gold valued at ₹7.09 lakh concealed inside an iron press . Such patterns have prompted officials to enhance their surveillance techniques,focusing on passenger profiling, behavioral analysis, and intelligence inputs to identify potential smugglers.

“We monitor travel patterns,suspicious baggage movement, frequent flyer activity, and intelligence alerts,” a Customs officer explained. “Once intercepted, detailed examination is carried out, and the concealed gold is retrieved depending on the method used.”

Smuggling networks are increasingly relying on ordinary passengers,airport insiders,and frequent international travelers as carriers. These syndicates adapt their strategies based on market demand. A senior DRI officer remarked,“Whenever gold prices rise sharply, smuggling and black marketing also increase because the margins become substantial. Syndicates constantly assess which commodity fetches better commissions at particular time.”

As enforcement agencies ramp up their efforts,the challenge remains significant . The dynamic nature of smuggling operations,coupled with the ongoing fluctuations in gold prices,continues to complicate the fight against these illicit activities .

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