India’s gold imports reached all time high levels of US$ 56.5 billion and US$ 53.8 billion respectively during 2011-12 and 2012-13, which led to higher trade deficit of US$ 183.4 billion and US$ 190.3 billion in 2011-12 and 2012-13 respectively. The rise in imports of gold was one of the factors contributing to India's high trade and current account deficit in 2011-12 and 2012-13. However, as a result of the various measures taken by the Government and Reserve Bank of India, trade deficit declined from US$ 190.3 billion in 2012-13 to US$ 135.8 billion in 2013-14.

The Government has also taken a number of initiatives to boost exports and reduce imports, so as to reduce trade deficit and current account deficit. The Government gradually increased customs duty on gold from 2 per cent in January 2012 to 10 per cent in August 2013. The Reserve Bank also put in place the 80:20 scheme for nominated banks/agencies/entities to rationalize the import of gold in any form/purity, including import of gold coins/dore into the country. During 2014-15 (April-January), trade deficit increased only marginally by US$ 1.8 billion to        US$ 118.4 billion as against US$ 116.5 billion for the corresponding period of previous Year. The 80:20 scheme was withdrawn in November 2014. These measures have helped in reducing trade deficit and CAD in 2013-14 and subsequent quarters of 2014-15.

As regards the oil prices, the monthly average crude oil prices (Indian basket) were trading at more than US$ 100 per bbl between April 2011 to August 2014. However, crude oil prices fell sharply from September 2014 and reached US$ 46.6 per bbl in January 2015. Owing to the fall in crude oil prices the oil import bill also came down, which has led to lower levels of trade deficit in the current year.

Smuggling of Gold or any other commodity/item depends on the demand and supply mismatch as well as dynamic of the price differential in domestic and international price.

There are no figures available regarding estimates of smuggled gold, however, the details of Gold seized by customs, including Directorate of Revenue Intelligence, during the last three years are as under:

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

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