15% duty fuels gold smuggling surge; grey market undercuts official trade by ₹8-10 lakh/kg

India Bullion & Jewellers Association flags rising smuggling via Gulf, Bangladesh and Nepal routes after duty hike to 15% plus 3% GST. WGC warns of a 2013-style surge, with ₹4.19 crore already seized in Kolkata and Mumbai. Threatens organised jewellery trade across Maharashtra, TN, Gujarat and Bengal.

— Source publishedTue, 2 Jun, 2026, 23:58 IST·First seen Wed, 3 Jun, 2026, 00:03 IST·Source ET Small Business

What happened

India Bullion and Jewellers Association (IBJA) · Import duty hike to 15% is fueling gold smuggling via Gulf, Bangladesh and Nepal, with grey-market gold selling

Key facts

  • 15% import duty
  • 3% GST
  • ₹8-10 lakh per kg discount
  • ₹1.65 crore landed price
  • ₹4.19 crore seized
  • 70 tonnes Q1 2014

Why this matters

Duty-driven dislocation opens consolidation windows as unorganised and sub-scale jewellers buckle under grey-market competition, creating selective M&A and franchise-conversion targets across the four key states.