Page 36 - DRI ANNUAL REPORT EBOOK

The undying Indian passion for gold is a phenomenon that is centuries old. India has earned for itself the sobriquet of “golden bird” without having any substantial reserve of gold in its mines. Gold plays a pivotal role in the country’s culture and is considered a store of value, a symbol of wealth and status and fundamental to many social and religious rituals. There is a deep affinity for gold for the practical considerations of its portability and the security of gold jewellery as a preferred portfolio of investment.
A Canada-based research organisation IMPACT, in one of its reports, noted that India has approximately 20,000 tonnes of gold in private reserves held by households and temple trusts. This exceeds the combined gold reserves of the central banks of the US, the Eurozone and China.
While the Indian demand for gold is ever-increasing, it is estimated that about one-sixth of the total volume of gold entering India, is by way of illicit trade. India imports about 800- 850 tonnes of gold every year while its annual consumption is around 1,000 tonnes. This suggests that roughly 150-200 tonnes of gold are being smuggled into the country every year.
India’s Year-wise gold import data
Year
Quantity Imported (in Metric Tons)
Value of Imports (in Rs. Cr)
Duty Collected (in Rs. Cr)
2016-17
716
167337
10843
2017-18
833
180559
13625
2018-19
796
167483
10570
Chart showing import of Gold in terms of quantity and duty from 2016-17 to 2018-19
2 SMUGGLING IN INDIA REPORT 2019-20
GOLD