Despite the introduction of the 10% gold import tax gold demand in India rose by 13% in 2013 to 975 tonnes according to the World Gold Council. Jewellery demand climbed 11% to 612.7 tons and investment demand in 2013 increased by 16% to 362.1 tonnes. Demand significantly dropped off in the second half of the year as a result on the gold import tax.

Total gold demand may be significantly higher as illegal gold smuggling into India may be as much as 10-20 tonnes per month.

Industry experts are forecasting that gold demand will be between 900 and 1,000 tonnes in 2014.