The new Companies Act that came in to force qualified the money mobilised by jewellery companies as deposits and as a result they had to discontinue such schemes.
Import in the first nine months of the current calendar year fell 20 per cent to 525 tonnes from 658 tonnes in the year-ago period.
In China, premiums fell to about $1.50 an ounce on Friday from $2-$3 an ounce.
The jewellery industry has welcomed the government's decision to ban old Rs 500 and Rs 1,000 notes, saying gold demand will rise as people will have more faith in the precious metal than the currency notes. But the unorganised builders and secondary (resale) property market would be adversely impacted.
According to World Gold Council (WGC), gold jewellery demand in India, the world's largest consumer, touched record 662.1 tonnes in 2014.
Gold is currently ruling at Rs 30,050 per 10 grams.
Govt restrictions on import biting deep; trade petitions for relief with units, workers idling.
The best way to curb gold demand is by reducing black money in circulation.
According to jewellers and MMTC-PAMP India, gold demand has picked up in the wake of good monsoon and favourable price levels. There was positive response and more footfalls.
Govt clamps have resulted in 93% decline in April-November
Imports in 2016 expected to be lowest in 7 years but experts don't rule out a revival in demand if the yellow metal's price falls
Supply through recycling of used gold declined to around 10 tonnes in the second quarter of the current calendar year.
By tying gold imports directly to export volumes, India is effectively trying to cap how much bullion can be brought into the country, tightening supplies and driving up local prices.
Levy in India one of the highest in the world; finance minister urges banks to tell customers not to invest in the metal.
A worker earns Rs 10,000-20,000 but in the past month earnings had dwindled to Rs 5,000-7,000.
At nine-month high, current prices attractive; consumers want to cash in before a correction
It was unclear how bankers were deciding which jewellers to support
India's biggest jewellers' association has asked members to stop selling gold bars and coins.
Dealers anticipated a sharp rise in jewellery demand this wedding season, but then came demonetisation.
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