India Reviews Gold Import Duties Amid Smuggling Concerns

The Indian government is reviewing gold import duties as concerns rise over smuggling. Officials are assessing whether lowering duties could make legal imports more attractive and reduce incentives for smuggling.

Bullion traders and jewellers have urged the government to lower gold import duty from 15% to 6%, arguing that higher taxes fuel smuggling and widen the price difference between legally imported gold and smuggled supplies.

India imports around 700-800 tonnes of gold annually, one of the world's largest gold markets. Gold imports surged nearly 82% year-on-year in April 2026 before the duty increase, raising concerns over foreign exchange outflows and current account deficits.