Kolkata: Smuggling gold into India is set to get tougher as the government is expected to tighten security along the borders in the aftermath of last week’s terror strike in Pulwama, gold traders and bullion dealers said.
“Following this ghastly terror attack in Pulwama, it is expected that the government will beef up security in the border region. So, this will bring down the entry of gold through the borders,” Surendra Mehta, national secretary of the India Bullion & Jewellers
Association, told ET. Traders had earlier indicated that the quantity of smuggled gold may increase by 25-50 per cent over last year because of the high price of the metal and 10 per cent import duty. About 120 tonnes of gold were smuggled into India in 2017, according to industry estimates. Gold demand in India was 598 tonnes in 2018, according to the World Gold Council. “The geopolitical tension between the two countries may see gold prices shooting up due to a depreciating rupee,” said.
