Mumbai: Gold imports this year by India, the biggest user of the metal, may match or exceed the amount bought in 2009 as economic growth and a stronger local currency boosts consumer confidence, the World Gold Council said.
"The trend we've been tracking since quarter four of 2009 has been a spurt in demand, and in the two months of this year, January and February, the trend continues," Ajay Mitra, the group's managing director for the Indian Sub-Continent and Middle East, said in an interview in Mumbai. Imports were about 480 to 500 tonnes last year, he said.
Gold demand in the world's second-fastest growing major economy is recovering after record prices last year spurred consumers to recycle jewellery and ornaments, cooling demand for new purchases.
Mitra said he's "cautiously optimistic" that imports should equal or exceed the level seen in 2009.
Early indicators
"If sentiments are good, the economy is recovering, early indications seem the monsoons are going to be good, we certainly see a better performance versus 2009," he said. "The sentiment of the consumer is very positive, because at the end of the day everything is driven by sentiments."
Purchases last month through to March 25 were between 28 tonnes and 30 tonnes, up from 4.8 tonnes a year earlier, the Bombay Bullion Association said on March 29. Imports this year won't be less than in 2009, the association's president Suresh Hundia said that day.
