Summary
Indian import of Gold is low by 59%.It is the weakest demand in recent years.This affect is due to the High prices and weak market conditions around the world.
Analysis
This year till May India has import 59% less Gold from past few years. Last year till May India import about 69Tonnes of Gold while this year this demand was around 28-32tonnes. This reduction of demand is due to High Gold Prices and weak market condition inside India and around the wrold.These conditon are very bad from last year September, before September 2007 Indian demand for Gold was very good and India Retail market conditons were also good but from September 2007 as price of gold remain High the demand and Retail sector goes down.This fall in demand is the lowest fall from past few years and it is expected that this might continues as Indian Traditional market conditons are not very good on the other hand export of gold and its jewelery is also very weak.While FICCI Federation od Indian Chamber of Commerce and Industry expects that India will double its export of Gem and Jewellery by 2015 which also leads in demand for gold imports.so lets hope for these conditions, but at present situation is very weak.
