India gold imports plunge 39% after duty hike, customs seize gold at airports

India raised the import duty on gold from 6% to 15% on May 13, the steepest increase on record. The World Gold Council reported that gold imports fell 39% month‑on‑month to USD 3.4 billion in May, while the metal’s share of total merchandise imports dropped to about 5%. Domestic gold ETFs recorded their first monthly net outflow in more than a year, losing roughly Rs 7.25 billion, and gold prices rose nearly 6% after the duty hike.

Customs officials also seized undeclared gold at two Indian airports. In Mumbai, a belt worn by a Sudanese passenger concealed 12 kg of gold worth Rs 5.38 crore. At Hyderabad, officers confiscated 374.38 g of gold valued at Rs 55 lakh from a traveler arriving from Malaysia, arresting the passenger under customs law.