India's gold demand falls 21% in 2016: WGC report

India's gold demand falls 21% in 2016: WGC report

 Demand for gold in the country in 2016 was down by 21.2% in volume terms and 10.9% in value terms when compared with the last year, according to World Gold Council (WGC).

 Gold demand in volume terms for the full year 2016 was 675.5 tonnes compared with 857.2 tonnes in 2015. In terms of value, gold demand for the year was Rs 1.82 lakh crore compared with Rs 2.04 lakh crore in 2015.

Total jewellery demand in India for 2016 was down by 22.4% at 514 tonnes when compared with 662.3 tonnes in 2015 while the value of jewellery demand in 2016 was Rs 1.38 lakh crore, a drop of 12.3% from 2015 (Rs 1.58 lakh crore), WGC said.

 Total investment demand for 2016 was down by 17.1% at 161.5 tonnes in comparison with 194.9 tonnes in 2015 while in value terms, gold investment demand was Rs 43,647.5 crore, a fall of 6.3% from 2015 (Rs 46,597.3 crore).

Total gold recycled in India in 2016 was 89.6 tonnes when compared with 80.2 tonnes in 2015, WGC said.

 “India’s gold demand for 2016 fell sharply by 21% as consumers took advantage of softened gold prices that coincided with Diwali and the wedding season,” WGC India managing director Somasundaram P R said.

 Demand was affected as the industry faced a number of challenges in transitioning to the emerging, structurally transparent system — be it the PAN card requirement, the excise duty on jewellery, demonetisation or the publicity around income disclosure schemes, Somasundaram added.

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