Gold demand in India is expected to be robust in 2014 and likely to encourage an increase in smuggling if curbs on bullion imports remain, the World Gold Council (WGC) said.
Indian gold consumption is expected to be 900-1,000 tonnes in 2014 for jewellery and investment purchases, according to the WGC. That is slightly behind top gold buyer China, whose demand is expected to be 1,000-1,100 tonnes.
Bullion demand in India rose 13 percent last year to 974.8 tonnes, according to the WGC's quarterly report issued on Tuesday, in a sign that consumer appetite has been largely unaffected by government restrictions on gold imports.
Struggling with a high trade deficit and a plunging rupee, India was forced to impose curbs on gold, which is the second-biggest expense in its import bill.
Indian gold smugglers are adopting the methods of drug couriers, stashing gold in imported vehicles and using mules who swallow nuggets to try to get them past airport security.
Customs officials have said that though they have increased the number of seizures, they have been able to catch only a fraction of the illegal shipments into India.
18/02/14 Siddesh Mayenkar and A Ananthalakshmi/Reuters
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Indian gold consumption is expected to be 900-1,000 tonnes in 2014 for jewellery and investment purchases, according to the WGC. That is slightly behind top gold buyer China, whose demand is expected to be 1,000-1,100 tonnes.
Bullion demand in India rose 13 percent last year to 974.8 tonnes, according to the WGC's quarterly report issued on Tuesday, in a sign that consumer appetite has been largely unaffected by government restrictions on gold imports.
Struggling with a high trade deficit and a plunging rupee, India was forced to impose curbs on gold, which is the second-biggest expense in its import bill.
Indian gold smugglers are adopting the methods of drug couriers, stashing gold in imported vehicles and using mules who swallow nuggets to try to get them past airport security.
Customs officials have said that though they have increased the number of seizures, they have been able to catch only a fraction of the illegal shipments into India.
18/02/14 Siddesh Mayenkar and A Ananthalakshmi/Reuters
