Demand for gold in India during the January to March quarter of 2014 stood at 190.3 tonnes against 257.5 tonnes in the same period of 2013, representing a 26 per cent decline.

In value terms, it translates into Rs 48,853 crore versus Rs 73,184 crore, a fall of 33 per cent. These are the findings of a report compiled by the World Gold Council.

Jewellery demand

The report also found that jewellery demand in the three-month period declined by 9 per cent to 145.6 tonnes compared with 159.5 tonnes during January-March quarter previous fiscal. Demand in value terms fell 18 per cent to Rs 37,378 crore.

At 44.7 tonnes against 98 tonnes last year, total investment demand was down by 54 per cent. In value terms, this was Rs 11,475 crore, a drop of 59 per cent.

Recyled gold

Total gold recycled in India in the period under study rose marginally to 21.3 tonnes from 21 tonnes in Q1 2013.

The expectations for demand during 2014 stand at 900-1,000 tonnes, the report said.

Somasundaram PR, Managing Director, India, World Gold Council, said, “The Q1 2014 figures illustrate the continued impact of higher import duties and supply curbs imposed on the gold market in an effort to reduce the country’s current account deficit. Policy makers and economists across the spectrum have acknowledged the risks of these types of policies. Gold continues to enter India through unofficial channels and whilst the estimates of the grey market vary, there is now a far great understanding of the adverse impact it is having on the Indian gold industry and genuine consumers.”