The customs department seized 2,000 kg of smuggled gold in the first half of 2023-24, registering 43% more seizure than last year, the Central Board of Indirect Taxes and Customs (CBIC) said on Wednesday.
CBIC chairman Sanjay Kumar Agarwal said higher seizures, however, do not necessarily mean an increase in gold smuggling.
“The difference in prices of gold which are prevailing in the international market and domestic prices could be a reason for the increase in gold smuggling. But again, higher seizures this year can also be because the customs department is doing a better job of detecting the crime,” he said at a campaign to destroy seized narcotics and foreign cigarettes.
“So it is difficult to say if the smuggling of gold has gone up or down,” he said. It is worth highlighting that India is the biggest importer of gold in the world.
According to the data by the Ministry of Commerce, gold worth USD 22.25 billion was imported in April-September 2023 which is 10 per cent more than a year ago.
Meanwhile, Emkay Wealth Management said the Middle East conflict has impelled investors’ preference for gold, which has resulted in an upward price mobility in the asset class.
Gold prices are expected to edge higher in the immediate term ahead of Diwali. It is to be noted that the gold price has been rising in the past few weeks as conflict erupted in the Middle East and US treasury bond yields moved higher.