The recent increase in import duties on gold to 15% has reignited gold smuggling activities in India, particularly from Gulf nations. Traders indicate that smuggled gold is being sold at discounts of ₹8-10 lakh per kg compared to official market prices. Surendra Mehta, national secretary of the India Bullion & Jewellers Association, noted that much of this gold is carried by passengers who bypass customs regulations. The grey market thrives under high-duty conditions, with a bullion dealer explaining that the landed price of gold includes substantial duties, incentivizing smuggling. Historical data from the World Gold Council reveals that previous duty increases, such as in 2013, led to a seven-fold rise in unofficial imports. Customs officials have already intercepted significant amounts of smuggled gold, including a recent seizure at Mumbai's Chhatrapati Shivaji Maharaj International Airport valued at ₹4.19 crore. Experts warn that once smuggling networks are established, they are challenging to dismantle, suggesting a persistent issue for authorities.