Gold Smuggling Rises After Import Duty Hike

Indian enforcement agencies have reported a renewed increase in gold smuggling attempts following the government’s decision to raise import duties on gold and silver. Officials from the Directorate of Revenue Intelligence (DRI) and Customs said the sharp increase in domestic gold prices and the widening gap between international and local markets have once again made gold smuggling highly profitable for organized networks.

According to authorities, Hyderabad’s Rajiv Gandhi International Airport has become one of the key hotspots for detecting smuggling operations. Surveillance teams have identified a growing pattern of illegal gold transportation through air routes, particularly from Gulf countries and several African nations. Officials believe criminal syndicates are taking advantage of the higher profit margins created by the new import tariffs.

In one of the latest cases, DRI officials seized 3.5 kilograms of foreign-origin gold worth more than ₹3.45 crore at Hyderabad airport on May 2. Three individuals, including two airport ground staff members, were arrested in connection with the operation. Investigators said the gold bars were secretly transferred near the aerobridge before being moved out of the airport premises.

Authorities also noted that smugglers are continuously changing concealment techniques to avoid detection. In separate incidents, gold was discovered hidden inside an electric iron, concealed within commercial chocolate packets, and even stitched into specially designed belts and trouser pockets. In another case, officials recovered gold hidden inside fake silver-coated compartments built into water bottles.

Senior officials stated that smuggling networks operate based on market profitability. When gold prices rise sharply, syndicates shift their focus toward gold trafficking because of the higher returns. During other periods, these groups may redirect their activities toward narcotics or other high-profit illegal trades.

Customs officers said they rely heavily on passenger profiling, behavioral analysis, travel pattern monitoring, and intelligence inputs to identify suspects. Authorities also warned that smuggling groups are increasingly using ordinary travelers, frequent international flyers, and even airport insiders as carriers while constantly adapting their methods to bypass security checks.