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Mining.com reported that import restrictions and higher tariffs have led to an increased amount black market gold being smuggled into India. The number of gold seizures rose to 3,412 cases in the first 10 months of fiscal 2015 for a value of approximately $150 million, compared to 2,450 cases during 2014, according to Kitco.
Mining.com reported that import restrictions and higher tariffs have led to an increased amount black market gold being smuggled into India. The number of gold seizures rose to 3,412 cases in the first 10 months of fiscal 2015 for a value of approximately $150 million, compared to 2,450 cases during 2014, according to Kitco.
As quoted in the market news:
The smuggling was most certainly done to circumvent import curbs that came into force in August 2013, to shore up the tanking rupee and tackle the country’s current account deficit which had ballooned to 5.5 percent of GDP.
Last November however, the Reserve Bank of India scrapped the restrictions on gold imports, and the withdrawal of the so-called 20:80 rule which forces traders to re-export 20 percent of all imports.
