India raises gold import tariffs, boosting informal imports; illegal gold imports in the third quarter hit the highest level since 2023

(1) The World Gold Council report shows that driven by an increase in import duties by the Indian government, informal channel import activity has increased significantly, with the country's illegal gold imports rising to the highest level since 2023 in the third quarter. (2) Citing data from consulting firm Metals Focus, the World Gold Council pointed out that from July to September, India's gold imports through informal channels rose more than 15 times year-on-year, increasing from 3 tons in the same period last year to 50 tons. (3) The report did not specify in detail how these trade activities are tracked; such imports usually circumvent official duties, such as through smuggling, or by individuals bringing small quantities of gold into the country in batches. (4) The World Gold Council stated that past experience shows increasing import taxes often “increases” the incentive to bring gold into the country through such channels. (5) Previously, the Indian government more than doubled gold and silver import duties to 15%, aiming to curb gold purchase demand in response to a widening trade deficit driven by rising energy prices; as the world's second-largest gold consumer, India's informal gold trading market has continued to be active since then.