"In the first half of this year, gold demand fell to 248 tonnes. We think that demand will be better in the second half on the back of good monsoon," WGC India MD Somasundaram PR told PTI on the sidelines of an Assocham event.
He pegged the gold demand at 750-800 tonnes for the 2016 calendar year.
In August, WGC had reported that the country's gold demand fell by 30 per cent to 247.4 tonnes during the first six months of 2016 from 351.5 tonnes in the year-ago period.
Gold prices are ruling above Rs 31,000 per 10 gram in the national capital today.
Also Read
He said the industry is facing a challenging situation due to imposition of 1 per cent excise duty on gold jewellery and requirement of Pan Card number for jewellery purchase of above Rs 2 lakh.
Somasundaram stressed on increasing consumer awareness to follow the rules of pan card.
Asked about the imports for the full year, he said it should fall in line with demand but declined to give any figure. "Imports are dependent on two factors demand plus stocking. So its difficult to make estimates".
On gold price outlook, Somasundaram said: "We do not comment on prices. But fundamentals for gold demand and prices are robust".
Disclaimer: No Business Standard Journalist was involved in creation of this content