India's move to double gold import tariffs to 15% in May has sparked a rise in gold smuggling. Illegal imports might top 100 tonnes this year. Government could lose about $2.65 billion in revenue as smugglers exploit big price gaps between grey market and official channels.
India,second only to China in gold market size,tried to curb demand and ease pressure on rupee with these tariffs. But plan backfired. Smugglers offer prices banks can't match. Grey market discount now over $200 per ounce — over 4% advantage for illegal sellers. Banks can't even offer $10 discount . Smugglers have upper hand .
Industry insiders,including a bullion division head at a Mumbai bank,say trend will likely persist . Several dealers,who spoke anonymously,suggest illegal imports could surpass 100 tonnes by 2026. At current prices,that's about $14.35 billion. Big hit for Indian government…
