Unofficial grey imports are fueling the demand for iPods in India according to Wired magazine.

Shopkeepers frequently smuggle iPods and MacBooks from Singapore, Dubai and Malaysia into India to meet demand and avoid any local and international taxes they would incur on the way.

A 30GB video iPod can be found for around $280, substantially less than the $440 authorised dealers sell iPods for in India. "You can't buy Apple in India. I have to fly out of the country every month to get more," Om Gani, proprietor of a hole-in-the-wall stall in Burma Bazaar is quoted as saying.

Potential Apple customers need be wary, grey imports come without warranties and can in some cases be fakes. Industry estimates by Daily News & Analysis suggest that the grey market makes up between 60 per cent and 90 per cent of sales in India.