NEW DELHI, Dec 12 (Reuters) – Seizures of smuggled gold in India reached a three-year excessive this yr after the federal government raised the import responsibility on the dear metallic and worldwide flights resumed following COVID-19 curbs.

India is the world’s largest gold shopper after China and meets most of its demand by means of imports. In July it raised the duty on gold imports to 12.5% from 7.5% to dampen demand, convey down the commerce deficit and ease strain on the rupee.

So-called gray market operators attempt to keep away from the import duties by promoting gold at reductions to market costs, which in flip forces competing sellers to decrease costs.

Customs and different companies seized 3,083.6 kilograms of gold illegally introduced within the nation as much as November this yr, primarily based on knowledge made public by the Ministry of Finance within the parliament on Monday.

This was the most important quantity since 2019, when 3,673 kilograms of gold was seized.

“To deter smuggling of gold, customs field formations and Directorate of Revenue Intelligence (DRI) keep constant vigil and take operational measures,” the Minister of State for Finance Pankaj Chaudhary informed the parliament.

India lifted restrictions on worldwide journey from March 27, two years after curbs have been imposed to manage the unfold of COVID-19.

Reporting by Shivam Patel in New Delhi. Editing by Jane Merriman

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