India's 15% Gold Tariff Hike Revives Smuggling, Squeezes Legal Jewellery Supply Chains
Doubling of gold import duty to 15% has pushed grey market discounts past $200/oz. Smuggled gold inflows could exceed 100 tonnes in 2026, undercutting banks, refiners and organised jewellery retailers reliant on legal channels.
What happened
India Gold Market · India's doubling of gold import tariffs to 15% has revived smuggling, with grey market discounts exceeding $200/oz. Smuggled gold could top
Key facts
- 15% import tariff
- 100 metric tons (2026 est.)
- $200/oz grey market discount
- 4%+ discount
Why this matters
Scout acquisition targets among smaller refiners and regional jewellers facing duty-driven margin stress, but stress-test any deal against a multi-year grey market overhang scenario.
Also reported by
- Moneycontrol — Same time
- Moneycontrol — Same time