Nearly three in 10 household consumers planning to buy gold this Dhanteras intend to purchase it through informal channels offering lower prices, rather than from jewellers issuing proper bills, according to a survey by LocalCircles.
The survey found that 29% of respondents planning to buy gold on November 6 would opt for informal channels, while 71% said they would purchase gold from a jeweller with a proper bill. The question received 21,651 responses.
Informal channels can include under-the-counter cash transactions and purchases from dealers selling gold without proper invoices. Such transactions may involve smuggled gold, although not every unbilled sale necessarily involves illegally imported gold.
The findings come amid a resurgence in gold smuggling following the government’s decision to increase the import duty on gold from 6% to 15% in May 2026.
The higher duty, along with GST, has widened the price difference between officially imported and grey-market gold, making smuggled gold relatively cheaper.
What do consumers want the government to do about gold smuggling?
The LocalCircles survey also sought consumers’ views on measures to curb the sale of smuggled gold in India.
About 37% of respondents favoured a crackdown on gold smuggling networks, while 29% wanted the government to review import duties to discourage smuggling.
Another 17% called for strict action against sellers of smuggled gold, while 12% favoured combining stronger enforcement with policy changes. A further 5% wanted a consumer awareness campaign against buying gold without a bill.
This question received 20,471 responses. Overall, 66% of respondents favoured stronger enforcement, either on its own or alongside policy changes.
Gold smuggling rises after import duty hike
The survey findings come against the backdrop of a sharp increase in unofficial gold inflows into India.
According to the World Gold Council’s (WGC) Q3 2026 Gold Demand Trends report, unofficial gold inflows surged more than 1,500% year-on-year to around 50 tonnes in July-September, compared with approximately 3 tonnes in the corresponding period last year.
In contrast, official net gold imports declined 46% to 114.1 tonnes during the quarter.
The government had raised the import duty on gold from 6% to 15% on May 13, 2026. The move was aimed at conserving foreign exchange and easing pressure on the rupee.
The increase has also prompted calls from bullion traders and jewellers for a duty reduction amid concerns over rising smuggling. In August, reports suggested that the government was considering bringing the import duty back to 6%. However, no decision had been announced as of November 4.
Gold demand remains under pressure
High prices have also affected India’s gold consumption ahead of Dhanteras and the wedding season.
The WGC reported that India’s gold demand declined 29% year-on-year to 162.5 tonnes in the July-September quarter. Jewellery demand fell 20% to 99.9 tonnes, while demand for bars and coins dropped 40% to 55 tonnes.
In value terms, however, gold demand rose 3% to around ₹2.42 lakh crore, reflecting the impact of higher prices.
LocalCircles said it conducted the survey across 312 districts and received more than 42,000 responses from household consumers. The findings were based on responses collected through its platform.
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Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.