Gold smuggling into India has spiked ahead of key festivals, government and industry officials told Reuters, in response to record-high prices and a supply crunch. Smuggling of gold into the world's second biggest buyer of the precious metal had fallen after the government slashed import taxes on it to 6% from 15% last year.

However, Customs and Directorate of Revenue Intelligence (DRI) officials said smuggling has increased in recent weeks, with several attempts foiled at several Indian airports. Bringing gold into India and liquidating it used to be time-consuming and risky, but with strong festival demand and limited supply smugglers can now convert it in just a few hours, said a Chennai-based bullion dealer.

Indians will celebrate the Dhanteras and Diwali festivals this month, occasi

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