All that glitters has been gold for customs officials at Dabolim airport over the past few months. They have seized over 44 kilos of gold amounting to a little more than Rs 12 crores in 20 cases of smuggling. At an average of five cases a month, this is more than just a series of unfortunate individual events. This has an air of organised crime.
The government of India has been looking to curtail the import of gold for some time now. In 2013, the import tax on gold kept on rising, after a series of hikes. What was first six percent turned into double figures, rising up to 15 percent. This certainly threw a massive spanner in the works. India is the world’s largest importer of gold bullion and for the country, gold is second only to crude in terms of imports. But, where crude is an industrial commodity, gold is not. Secondly, the Indian tendency to invest in gold worked to restrict liquidity, which also meant lesser investments into the country’s growing economy. The government is of the view that the country needs investments into many of its sectors, on machinery, infrastructure and education. But, the money is being sunk into the yellow metal. It is with that background that the move to curb the import of gold happened.
Price wise, India is only 10-odd percent more than the Middle East, where gold is available in large quantities and it is here that the story of smuggling slowly gains momentum. The increase in direct international flights to Goa from the Gulf countries has resulted in the smugglers now choosing the state as an entry point into India. The proximity to Mumbai and Kerala makes it a desired location.
The customs officials have been vigilant and should be applauded for their efforts to stem the smuggling flow into the country but this story is far from over. Smuggling is going to continue. For organized crime, even Rs 12 crore is small change and there will be moves to bring in more gold. The smugglers have found innovative ways. Gold is smuggled in tins, household tools and equipment and even in hidden compartments in luggage. There has even been the case where gold was smuggled hidden in a perpetrator’s rectum. Organised crime will not give up this easily.
As a tourist destination, security sometimes tends to be a little relaxed when it comes to visitors into the state. It is this sentiment that criminals will look to exploit and it is here that security agencies need to focus their attention upon.
India will not regularize gold, not because of smuggling operations and certainly not when they need investment into the country’s economy drivers. Calls for this will fall on deaf ears. This is not a solution. What is the need of the hour is a move to curb the smuggling of gold. If this has turned into an entry point for smugglers then it is time for security agencies to clamp down and make life hard for those in smuggling operations. It would seem, judging by the regular seizures, that they have made moves in that direction.
