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Smuggled Gold Distorting India’s Bullion Market

Sharp Rise In Smuggled Gold, Driven Largely By The May 2026 Hike In Import Duty To 15%, Which Has Made The Grey Market Significantly Cheaper Than Legal Channels and Squeezed Legitimate Dealers and Jewellers

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India’s bullion market is being skewed by a sharp rise in smuggled gold, driven largely by the May 2026 hike in import duty to 15%, which has made the grey market significantly cheaper than legal channels and squeezed legitimate dealers and jewellers.

Market distortion and price gap

  • Smuggled gold is now selling at discounts of up to Rs 8,000 per 10 grams compared with official prices, creating a wide arbitrage that undercuts compliant traders.
  • Industry executives warn that this price gap is a clear signal of an active grey market, disadvantaging genuine bullion dealers and organised jewellers who pay full duty and taxes.

Scale of illegal inflows

  • Industry estimates suggest more than 100 tonnes of gold could enter India through illegal channels in 2026, echoing past surges in smuggling after earlier duty hikes.
  • Despite the higher tariff, India’s gold import bill rose 24% to a record $71.9 billion in FY26, even as physical volumes fell to about 721 tonnes, indicating persistent demand being met partly via unofficial routes.

Enforcement response

  • Revenue intelligence agencies, particularly the Directorate of Revenue Intelligence (DRI), have intensified operations against organised smuggling networks using airports, land borders, coastal routes and domestic road transport
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KISNA Takes Festive Gifting Nationwide With 300+ Billboards Featuring Shahid and Mira Kapoor

Projected To Generate 5+ Million OOH Impressions, The #GiftHappiness Campaign Highlights Exclusive jewellery Offers, Exchange Benefits and A Grand Festive Lucky Draw

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KISNA Diamond and Gold Jewellery, one of India’s leading jewellery brands, has rolled out a nationwide Out-of-Home (OOH) campaign featuring brand ambassadors Shahid Kapoor and Mira Kapoor. Spanning 300+ billboards across major cities, including Mumbai, Delhi, Bengaluru, Hyderabad and Kolkata, the #GiftHappiness campaign is strategically positioned along high-traffic roads, prominent commercial hubs and key shopping destinations, and is projected to generate 5+ million cumulative OOH impressions. The initiative aims to strengthen brand visibility and drive consumer engagement during the festive shopping season.

The OOH rollout is a key component of KISNA’s 360-degree festive marketing campaign, which brings together television, digital and social media, cinema advertising, influencer collaborations, print, retail branding and on-ground activations to amplify its festive gifting message across multiple consumer touchpoints.

Featuring Shahid and Mira alongside KISNA’s diamond and gold jewellery collections, the creatives spotlight up to 100% off on making charges on select diamond and gold jewellery, 105% value on old gold exchanged towards diamond jewellery purchases, and 90% buyback and 95% exchange value on diamond jewellery, including making charges. Additional benefits include Double Gold Rate Protection with a 25% down payment and a Grand Festive Lucky Draw, offering shoppers a chance to win over 800 vehicles, including cars and scooters, under the ‘Shop. Sparkle. Win.’ proposition.

The outdoor campaign complements KISNA’s expanding retail footprint of 170+ exclusive showrooms and 1,500+ retail touchpoints across 400+ cities in India, reinforcing its presence in key consumption markets and bringing its festive offerings closer to customers.

Commenting on the campaign, Parag Shah, CEO, KISNA Diamond and Gold Jewellery, said:

“Festivals are an important occasion for jewellery gifting, and our focus is on making these celebrations more rewarding for customers. Our OOH strategy prioritises high-impact visibility in key markets through billboard placements in high-footfall locations close to our existing showrooms, creating a stronger connection between consumer engagement and retail footfalls. With Shahid and Mira Kapoor bringing #GiftHappiness to life, we aim to strengthen consumer recall, drive showroom footfalls and make KISNA a preferred destination for festive jewellery purchases.”

Elaborating on the marketing strategy, Prashant Awasthi, Chief Marketing Officer, KISNA Diamond and Gold Jewellery, said:

“Our festive marketing approach is built around building a cohesive brand experience across multiple consumer touchpoints. OOH plays a key role in this 360-degree strategy, allowing us to reinforce #GiftHappiness in high-impact locations while television, digital, cinema and retail activations extend the campaign’s reach. By combining Shahid and Mira Kapoor’s appeal with compelling festive offers, we aim to drive stronger brand recall, consumer consideration and purchase intent during this important season.”

Together, these touchpoints amplify the brand’s ‘Khushiyon Ke Har Pal Ke Liye KISNA’ message,reinforcing the joy of gifting and KISNA’s association with meaningful festive celebrations.

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