The Kerala Gold and Silver Merchants Association (KGSMA) has called on the Indian government to urgently review and rationalise import duties on precious metals, warning that current tariff levels are driving a surge in smuggling.
The association argues that the steep cost differential between legal imports and the black market is undermining legitimate trade and threatening the livelihoods of registered jewellers across the state.
This appeal comes as India maintains a 15% import duty on gold and silver, a significant increase from the previous 6% rate implemented earlier this year.
This appeal comes as India maintains a 15% import duty on gold and silver, a significant increase from the previous 6% rate implemented earlier this year.
The higher tariffs were introduced to curb the current account deficit and reduce demand for foreign currency, but industry representatives say the policy has had unintended consequences.
With legal costs rising, consumers and smaller retailers are increasingly turning to illicit channels to source metal, eroding tax revenue and distorting market prices.
The pressure on India's jewellery sector is compounding.