As gold smuggling into India reaches record levels official imports continue to fall. Government figures released last week confirmed that legal gold imports for April declined by 74% to $1.75 billion.

The jewellery industry is suffering as manufacturers struggle to source gold from official sources. The shortage has caused premiums to soar forcing many to accept gold from unofficial channels. Gold smuggling into India has soared four fold to a record 148 reported cases in 2013-2014.

As a result of the gold import tax China has overtaken India as the world’s largest consumer of gold.