Indian Gold Demand Seen Jumping 10%

A report from Indian investment information and credit rating agency ICRA sees domestic Indian demand for gold jewelry jumping by 10% this year.
The good news in the report – 'Indian Gold Jewellery Retail Industry' – follows the Indian central bank's repeal of the 80:20 scheme under which Indian gold importers had to commit to exporting 80% of the gold they imported while only keeping 20% for domestic sale.
The 80:20 scheme led to a rise in smuggling of the yellow metal.
The 80:20 principle considerably constrained the availability of the yellow metal in the domestic market, especially during Q3 and part of Q4 CY13, with banks virtually stopping importing gold post the regulation owing to ambiguity regarding implementation of the measure - impacting availability of gold for jewelers," the report said.
The report also says that Indian economic growth will rise to 5.5% in the first half of this year compared with 4.5%-4.7% in 2012-2014.