Gold smugglers ‘make a killing’ in India as grey market outshines hefty tariffs

India’s sharp ⁠increase in gold import tariffs is fuelling a resurgence in smuggling that could exceed 100 tonnes this year, as soaring grey market margins allow smugglers to undercut banks and refiners of the precious metal, industry officials and bullion dealers said.

India, the world’s biggest gold market after China, more than doubled import tariffs to 15 per cent in May to curb demand, ‌cut the trade deficit and ease pressure on the rupee.

But the move has created an opportunity for...