the condition that forces importers to export 20 percent of their overseas purchases, said Bachharaj Bamalwa, director of the All India Gems and Jewellery Trade Federation.
There are indications that India may give in to the demand, but only after March when the government would get to know about the exact extent of the trade deficit.
Gold imports fell to just 21 tonnes in November against a record 162 tonnes in May last year, pushing up premiums to a record $160 an ounce on London prices. It has also triggered a huge rise in smuggling and recycling.
In its efforts to curb illegal imports, New Delhi focuses more on big buyers, with jewellers now required to give details of any purchase of gold bars or jewellery worth more than 500,000 rupees as at the end of January.