India sees a sharp jump in unofficial gold inflows in the July–September quarter, with estimates from the World Gold Council (WGC) and consultancy Metals Focus showing informal shipments rising by more than 1,500% to about 50 metric tonnes, compared with roughly 3 tonnes a year earlier.
The reported increase is linked by the WGC to higher import duties introduced earlier this year. The WGC says higher taxes can encourage traders to bypass official channels, with informal movement potentially involving smuggling or smaller amounts carried in by individuals to avoid paying duties. The WGC also points to more cash transactions involving gold and jewellery without formal invoices, which can make it harder for authorities to trace purchases.
All outlets mention that India relies heavily on overseas gold supply due to limited domestic production, and that gold plays a major role in weddings, religious events and household savings. Bloomberg and the Business Line focus directly on how the tax hike drives illegal imports to a multi-year high, while the Free Press Journal adds broader context on India’s gold market and demand conditions, including weaker signals compared with the prior year.
