Mp Ahammed, Malabar Gold highlights link between duty and smuggling

Mp Ahammed, Malabar Gold Chairman, has highlighted how high gold import duty is directly linked to increased smuggling in India. He explained that excessive taxation creates a strong financial incentive for illegal imports, as smuggled gold becomes significantly cheaper than legally sourced gold. M. P. Ahammed noted that reducing import duty would discourage grey market activities and strengthen the organised jewellery ecosystem. He also stressed that such reforms could boost exports, create employment, and improve transparency across the industry. India’s gold demand remains strong, especially in rural areas, making policy adjustments crucial for sustainable growth. By aligning duty structures with global markets, the government can curb illicit trade and ensure better consumer protection while increasing overall economic benefits.