In Indian media, reports of gold smuggling from Gulf countries, especially Dubai, are quite common. Kannada and Tamil film actress Ranya Rao was arrested by the Directorate of Revenue Intelligence (DRI) on Tuesday while returning from Dubai with 14.8 kilograms of gold.

The estimated value of the seized gold is around ₹12 crore. Ranya Rao was caught at Bengaluru’s Kempegowda International Airport with the smuggled gold.

Earlier, in 2020, the Central Board of Indirect Taxes and Customs (CBIC) had seized 30 kilograms (66 pounds) of 24-carat gold worth ₹14.82 crore from a diplomatic bag at Thiruvananthapuram Airport.

This incident caused a political uproar in Kerala. Chief Minister Pinarayi Vijayan’s Principal Secretary, M. Sivasankar, came under scrutiny in connection with the smuggling case and was forced to resign from his position.

Why are Indians Bringing Gold from Abroad?

India is the world’s largest gold consumer, with a deep cultural and financial attachment to gold. Gold is not only a symbol of wealth and tradition in India but also a solid investment option.

In India, gold is subject to significant taxes, making its price much higher compared to other countries.

This is why many travelers, especially those visiting Gulf countries, tend to buy gold from abroad. In countries like the UAE, gold is either tax-free or taxed at a much lower rate than in India, making it significantly cheaper.

For example, on March 5, 2025, the price of 10 grams of 24-carat gold in the UAE was ₹83,670, while in India, it was ₹87,980.

However, when bringing gold into India, passengers must declare it at the airport if it exceeds a certain limit. Failing to do so is considered smuggling.

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How Much Gold Can You Bring from Abroad?

Travelers bringing gold from abroad must declare it at customs and provide valid purchase receipts.

Men can bring up to 20 grams of gold duty-free.

Women can bring up to 40 grams of gold duty-free.


The Central Board of Indirect Taxes and Customs (CBIC) has set specific duty rates for importing gold beyond these limits.

There is no upper limit on the amount of gold one can bring, provided the applicable customs duty is paid.

Children below 15 years of age are also allowed to bring up to 40 grams of gold, provided their relationship with the accompanying traveler is verified.


As per the Passport Act of 1967, Indian citizens are allowed to bring gold in the form of jewelry, bars, or coins into the country.

3. Why Does Gold Smuggling Happen?

The Directorate of Revenue Intelligence (DRI) has seized 14.8 kilograms of smuggled gold from actress Ranya.

One of the biggest reasons for gold smuggling from Gulf countries is its lower price. The governments in these countries do not impose taxes on gold, making it significantly cheaper.

In contrast, India imposes high taxes on gold, which increases its price beyond its actual value.

The lure of buying cheap gold and selling it at a higher price in India fuels smuggling. This has been a long-standing issue in the world of organized crime.

Notorious underworld figures like Haji Mastan and Dawood Ibrahim once smuggled gold through sea routes. Today, new smuggling methods continue to emerge.

4. Where Does Most Smuggled Gold Come From?

India receives the highest amount of smuggled gold from Gulf countries.

The largest source is the United Arab Emirates, followed by Myanmar. Some African countries also play a role in gold smuggling.

According to DRI officials, only 10% of the smuggled gold is actually seized. The Central Board of Indirect Taxes and Customs (CBIC) reported confiscating approximately 4,869.6 kilograms of gold in 2023-24.

The states of Maharashtra, Kerala, and Tamil Nadu see the highest number of gold smuggling cases, accounting for around 60% of all such incidents.

CBIC Chairman Sanjay Kumar Agarwal recently stated that reducing import duties from 15% to 6% has helped curb smuggling to some extent.

If caught smuggling gold, individuals can face legal action under various sections of the law. Penalties may include a fine of ₹5 lakh, life imprisonment, and a lifetime ban on foreign travel.