GOLD smuggling has risen sharply after the customs duty on gold was increased from 6 per cent to 15 per cent on May 13. More than 150 kg of smuggled gold was seized across India in just three months after the hike. In comparison, around 70 kg was seized in the first five months of 2026, according to enforcement data. The sharp rise has given a fresh push to the illegal gold trade. Smugglers now find it more profitable to bring gold into India without paying customs duty. The new duty includes 10 per cent Basic Customs Duty and 5 per cent Agriculture Infrastructure and Development Cess (AIDC). The Government increased the duty to discourage gold imports, save foreign exchange and support the rupee. But the higher duty has also made illegal imports more attractive. DRI officials said there is a clear pattern. When the customs duty is around 9 per cent or below, gold smuggling remains largely under control. Once it rises to 15 per cent, smugglers become more active.

 

 

They can bring gold into the country without paying the duty and still sell it at a price lower than legally imported gold. The figures show the sudden change. Only five gold-smuggling cases were detected across the country during the first five months of 2026. After the duty hike, 11 cases were detected in just three months. The quantity of gold seized also jumped sharply. Around 70 kg was seized in the first five months. More than 150 kg was seized in the next three months. This means enforcement agencies seized nearly twice as much gold in three months as they did in the previous five months. Officials, however, believe the seizures are only the tip of the iceberg. A much larger quantity could be moving through the illegal network. Recent DRI and Customs operations across the India, including Nagpur have exposed the scale of the network.

 

On August 4, the DRI seized around seized 2.165 kg of foreign-origin gold from a person at Nagpur railway statoin. Investigators found that the carrier had collected the gold near the Bangladesh border. He was then taking it near Mumbai. Bangladesh has emerged as an important transit route for the smuggling network. In another case, a passenger travelling on the Brahmaputra Mail was caught with around 5 kg of foreign-origin gold. It was hidden in a waist belt and handbag. The passenger told investigators that the gold had entered India through Bangladesh. Sources informed that the network is carefully divided. A carrier may be given the gold and a train ticket. He may not even know the final destination. During the journey, the operator stays in touch with the carrier over the phone. When the train approaches a particular station, the operator asks the carrier to get down. Another person then takes charge of the gold. This makes it difficult for investigators to trace the entire network by catching one carrier. Gold is being moved through airports, railway stations, vehicles and courier consignments.

 

DRI and Customs teams have found gold hidden in aircraft lavatory panels, vehicle cavities, specially made utensils and luggage frames. In some cases, carriers have also concealed gold on or inside their bodies. The routes are not limited to Bangladesh, said the officials. The DRI seized 4.6 kg of gold at Kolkata Railway Station in July. The investigation found that it had entered India through Myanmar. In June, 11.6 kg of gold linked to Thailand was intercepted at Kolkata Airport. Another 12 kg was recovered from a courier consignment originating in Thailand and intercepted in Delhi. The changing methods show how organised the smuggling network has become. It is no longer just about a passenger hiding gold in his luggage.

 

Syndicates are using multiple carriers, transit points, handlers and recipients, the official explained. In some cases, airport staff have also been found helping smugglers remove concealed gold. For enforcement agencies, the biggest concern is what they cannot see. The seized gold may represent only a small part of the actual illegal trade. The duty hike was aimed at discouraging gold imports. But the sharp rise in seizures shows that it may also have created a bigger incentive for smugglers to bring gold into India through illegal channels. DRI officials urged citizens to share information about gold smuggling with their office.