Gold Smuggling In India Hits 4,869.6 kg: Manipur-Myanmar And Siliguri Corridor Emerge As Key Trafficking Routes

India seized 4,869.6 kg of smuggled gold in the Financial Year 2024 (FY24), as smugglers exploited porous borders and rising domestic demand, according to the Directorate of Revenue Intelligence (DRI). 

Despite lowering the customs duty on gold from 15 per cent to 6 per cent in Budget 2024, smuggling remains rampant due to a mismatch between demand and supply. Over 90 per cent of India’s annual gold consumption relies on imports, driven by cultural traditions and investment needs.

The DRI’s latest Smuggling in India 2023-24 report highlights Myanmar as a key source and transit hub for illicit gold. Smuggling syndicates use well-established corridors, such as Tamu-Moreh in Manipur and Zokhawthar in Mizoram, leveraging challenging terrain and limited border controls. Transit hubs in Myanmar, including Muse, Ruili, and Mandalay, play a crucial role before gold enters India.

“Manipur and Mizoram have become critical hotspots for gold trafficking, as evidenced by frequent seizures,” the report stated, adding that surveillance along these routes has been intensified. Revenue Secretary Sanjay Malhotra emphasised the ongoing challenge, saying, even with reduced customs duty, "Gold smuggling continues to be a menace.”

In FY24, the Central Board of Indirect Taxes and Customs registered 6,425 smuggling cases, underscoring the scale of the issue. Beyond the Northeast, smuggling syndicates also use Nepal’s road and rail networks to move gold into major Indian cities. The Siliguri Corridor in West Bengal remains a choke point for gold entering mainland India.

Smugglers employ increasingly sophisticated techniques to evade detection. Gold is concealed in machinery parts, alloyed with other metals, or hidden in modified vehicles with secret compartments. Air cargo and courier routes are also emerging as significant smuggling channels.

Syndicates operate on a “hub and spoke” model, distributing smuggled gold from central hubs to various regions. Once inside India, the gold is often re-melted and crafted into jewellery, erasing its illegal origins and integrating it into the formal market.

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