Demonetisation lowers India's gold demand to 7-year low in 2016

India's gold demand fell by 15% to $27.2 billion in calendar 2016 from $32 billion in 2015

India’s gold demand has fallen to a seven-year low in 2016 and a sharp decline in smuggling post demonetisation has aided the trend.

Data compiled by the global miners’ body World Gold Council (WGC) showed India’s gold demand at 675.5 tonnes in 2016, 21.2 per cent lower than 857.2 tonnes in the previous year. Demand by value declined 15 per cent to $27.2 billion in 2016 from $32 billion a year ago. 

The decline follows several government initiatives to discourage consumers from buying gold. The government last year strengthened the know-your-customer rules by imposing a limit on anonymous cash purchases