India’s import of liquid gold increased. Imports of 69,879 kg in January-March 2025 resulted in a loss of ₹906 crore to the government.
Published: December 17, 2025 10:47 AM IST
Gold smuggling has been a major issue in India for years, with gold smuggled into India by concealing it on the body or in luggage, avoiding customs duties. However, clever importers have now discovered a way to smuggle gold into India without paying customs duty. These individuals are bringing large quantities of gold into the country in the form of “liquid gold,” chemical compounds of gold. “Liquid gold” is a compound made by mixing gold with other chemical elements to form compounds that are primarily used in industry. It is imported from partner countries like the United Arab Emirates (UAE), Japan, and Australia, with which India has free trade agreements. Under these treaties, such compounds are exempt from import duty, while ordinary gold is subject to a duty of up to 6%.
According to official data, liquid gold imports surged significantly in the January-March 2025 quarter. According to the Directorate General of Commercial Intelligence and Statistics (DGCIS), the country imported 69,879 kg of liquid gold during this period, a 9.25-fold increase compared to the previous year and a 2.84-fold increase compared to the previous quarter. Its total value is estimated at approximately $1.29 billion. Liquid gold imports, which were only 2,143 kg in FY21, increased to 127,886 kg in FY25. This increase was further exacerbated by policy changes made in Budget 2025.
According to a report in the Times of India, the volume of conventional gold imported has declined by 51.2% compared to liquid gold, reaching $9.5 billion. This clearly indicates that importers have found an easy way to avoid customs duties through liquid gold, resulting in significant losses to the government treasury.
16,778 kg of pure gold extracted
According to experts, the amount of pure gold extracted from liquid gold is on average 15%. Accordingly, approximately 16,778 kg of pure gold was extracted from 111,856 kg of imports in the financial year 2024-25. At an average rate of ₹90 lakh per kg, the government has incurred a customs duty loss of approximately ₹906 crore.
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Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: india.com
