India's 15% Gold Tariff Fuels Grey Market as June-Quarter Imports Drop 23%

2 articles · Updated · Yahoo Finance UK · Jul 30

160.91 kg of gold was seized between May 13 and June 30, nearly double the 86.16 kg seized in the prior period, after India raised import duty to 15%.
An 18% gap from the 15% duty plus 3% GST has widened arbitrage for unofficial inflows, the World Gold Council said, squeezing organized traders.
98.1 tons of net gold imports entered India in the June quarter, down 23% year on year and the lowest since September 2020.
131.4 tons of gold demand in the quarter was 6% lower than a year earlier as weaker jewellery buying outweighed strong investment demand.
69.2 tons of smuggling in 2024 had fallen after an earlier duty cut, but industry officials now say the renewed grey-market surge could push illegal imports above 100 tons in 2026.