Higher Gold Tariffs in India Fuel Illegal Trade and Hit Jewelry Market

India's decision to raise import duties on gold has produced an unexpected consequence, triggering a sharp increase in smuggling while hurting the country's legal gold trade. The findings come from the World Gold Council (WGC), as reported by Reuters. Higher Import Duties Drive Illegal Gold Trade In May, India more than doubled its import duty on gold to 15%. Combined with the country's 3% Goods and Services Tax (GST), the total price gap reached 18%, creating a strong financial incentive for illegal imports. The higher costs have fueled a surge in gold smuggling, dealing a blow to India's organized jewelry industry.