Gold smuggling on rise in India; yellow metal worth Rs.245 crore seized in one year.

New Delhi: Indicating a surge in cases of gold smuggling, sleuths of revenue department have seized the yellow metal worth about Rs.245 crore being pushed illegally through the country’s borders in the past one year.

As many as 700 cases of gold smuggling have been reported across the country so far during 2013-14, official sources said. These cases were reported by customs and directorate of revenue intelligence (DRI) officials, among others, through international airports and land borders, and involved seizure of gold valuing about Rs.245 crore, they said.

There were 870 cases of gold smuggling reported during 2012-13 involving seizure of the yellow metal worth Rs.99 crore, the sources said.

The increase in cases of gold smuggling has been a matter of concern for finance ministry which is grappling to rein in current account deficit (CAD), difference between the outflow and inflow of foreign currency.

The CAD touched a historic high of $88.2 billion or 4.8% of gross domestic product (GDP) in 2012-13 and was mainly attributed to high imports of petroleum products and gold.

India, the largest gold consumer in the world, has imported 830 tonnes of gold in 2012-13. Finance ministry has been taking various steps to curb gold imports. Revenue department officials blame gold import duty hike for rise in cases of smuggling. The finance ministry had in January 2012 decided to hike duty to 2% by making it ad-valorem (according to value).

Earlier, Rs.300 was charged as tariff on the import of 10 grammes of gold. Subsequently, it was raised to 4% in 2012-13, 6% in January 2013, 8% on 5 June and 10% in August last year.

Source : livemint.com