Why Did Gold Smuggling Cases Decline in FY25 in India?
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Synopsis
In FY25, India experienced a significant drop in gold smuggling cases, with seizures plummeting to 2,600 kg. This article explores the factors contributing to this decline, the ongoing challenges posed by illegal gold inflows, and the implications for India's economy.
Key Takeaways
- Gold smuggling cases decreased to 2,600.40 kg in FY25.
- Seizures have fallen sharply from previous years.
- India's demand for gold remains high despite the decline.
- Strengthened enforcement actions are underway to combat smuggling.
- Customs revenue from gold imports reached Rs 26,402 crore.
New Delhi, Aug 18 (NationPress) Gold smuggling into India has seen a significant drop in FY25, as customs officials reported the seizure of 2,600.40 kg of the precious metal across 3,005 cases, as disclosed to Parliament on Monday.
This marks a considerable decrease from the previous year, where 6,599 cases were logged and nearly 5,000 kg of gold was confiscated, according to Minister of State for Finance, Pankaj Chaudhary, in a written response to a query in the Lok Sabha.
The current statistics indicate a reversal of the drastic increases recorded in FY23 and FY24, during which seizures surged.
In FY24, notably, the volume of confiscated smuggled gold reached 4,971.68 kg, the highest in a decade.
Data reveals that in FY23, authorities seized 4,342.85 kg in 4,619 cases, while FY22 recorded 2,172.11 kg across 2,236 cases.
The government has linked these variations to enhanced enforcement, changing smuggling pathways, and fluctuations in international pricing.
Since the fiscal year 2015-16, when 2,972 kg of gold was seized, trends in seizures have largely reflected market dynamics and increased security measures at entry points.
Despite this decrease in FY25, experts emphasize that India's relentless appetite for gold, spurred by jewelry demand and investment opportunities, continues to drive illicit imports.
The official gold import expenditure reached nearly $58.1 billion in 2024, with Switzerland, the UAE, and South Africa being the main suppliers.
According to the data, in 2024, Switzerland was identified as the leading source, generating customs revenue of Rs 7,523 crore, followed closely by the UAE at Rs 7,486 crore and South Africa at Rs 2,670 crore.
Other significant contributors included Peru (Rs 2,051 crore), the United States (Rs 817 crore), and Australia (Rs 1,435 crore).
Overall, customs duty collections from gold imports reached Rs 26,402 crore in 2024, highlighting the vast scale of legal trading amid ongoing smuggling challenges.
Officials confirmed that surveillance and technology-based measures are being further enhanced to combat gold smuggling, particularly at airports and land borders.
Point of View
It is crucial to recognize the complexities surrounding gold smuggling in India. While the recent decline in cases is promising, ongoing demand for gold and shifting smuggling routes pose persistent challenges. The government's efforts to enhance surveillance and tighten security at entry points are commendable, and it is important to remain vigilant in combating illegal trading.
NationPress
19/08/2025
Frequently Asked Questions
What was the total amount of gold seized in FY25?
In FY25, customs authorities seized a total of 2,600.40 kg of gold.
How does FY25 compare to previous years in terms of gold smuggling?
FY25 saw a significant decline in gold smuggling cases compared to FY24, where nearly 5,000 kg was seized.
Which countries are the top suppliers of gold to India?
The top suppliers of gold to India include Switzerland, the UAE, and South Africa.
What measures are being taken to curb gold smuggling?
Officials are enhancing surveillance and utilizing technology-based interventions to combat gold smuggling.
What are the implications of gold smuggling for India's economy?
Gold smuggling impacts India's economy by affecting legal trade, customs revenue, and market dynamics.
