Import of gold into India declined sharply in December 2016 and January 2017 as compared to the highs reached in October and November last year, data released by the Reserve Bank of India showed. According to the central bank’s figures, while imports in December were 54.1 tonnes, in January they were marginally lower at 53.2 tonnes, both significantly below the 119.2 tonnes of gold imported in November.

An RBI assessment paper noted that the domestic demand for gold (or gold items) spiked immediately after the government announced its decision to demonetise high denomination currency notes in early November. This coupled with the strong seasonal demand in October and early November pushed imports up significantly.

The bank said that the January 2017 figures also represent a 43% fall as compared to imports in January 2016.