Mumbai : The demand of Gold in India can drop by around 33 percent at about 700 tonne this year due to weak consumer sentiments. World Gold Council, WGC said that record high local prices and rising inflation following concerns over weak monsoon are reasons behind the projected decline. The WGC, however, said that the demand is likely to recover in the second half of this year following the upcoming festival and marriage seasons.

The WGC said, China is likely to overtake India as the largest importer of gold this year on the back of huge demand for the precious metal for jewellery and investment in the world’s second-largest economy.