---
title: "India's gold tariff hike fuels $14bn smuggling surge risk"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/289223851.md"
description: "India's recent increase in gold import duties has triggered a surge in smuggling, reversing previous declines. Smugglers exploit the 18.45% tax gap to earn over $26,000 per kilo, offering discounts legal importers cannot match. This illicit trade is projected to reach $14.35 billion by 2026, potentially costing the Indian government $2.65 billion in lost tax revenue."
datetime: "2026-06-09T17:43:38.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/289223851.md)
  - [en](https://longbridge.com/en/news/289223851.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/289223851.md)
---

# India's gold tariff hike fuels $14bn smuggling surge risk

Tariff hike backlash: India’s sharp gold import duty increase has made smuggling more profitable, reversing recent declines in illegal imports. Massive profit margins: Smugglers avoid 18.45% in taxes, earning over $26,000 per kilo bar, allowing steep discounts that legal importers cannot match. Economic toll: Projected illegal imports worth $14.35 billion could cost India $2.65 billion in lost tax revenue in 2026.

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