India's gold consumption declines by 44% in Dec quarter: World Gold Council

NEW DELHI: Indian gold jewellery consumption has slipped by 44% during the December 2011 quarter as against the corresponding period in 2010, said the World Gold Council data. This fall has been for the second quarter in one row. The Chinese demand, on the other hand, rose 2% in the same period.

This has led to China overtaking India to emerge as the largest gold jewellery consumer for the second quarter consecutively. The September 2011 quarter had witnessed India's jewellery demand decline 25% as compared to 13% expansion in Chinese demand.

India has been affected by the declining rupee and also high inflation. It's share in the international demand slipped to 24% in the six months ended December 2011. In the year-ago period, India had been responsible for 33% of the international demand. China's share has surged to 28% from 23% in the same period.

In regard to the tonnage terms, India had consumed 228 tonnes of gold in the past six months ended December 2011 and Chinese demand stood at 262 tonnes.