This article describes how India has increased the import duty on gold from 6% to 8%. It is the second time in six months that India has increase the import duty. The article also states that according to the World Gold Council, India could import as much as 400 tonnes of gold in the first three months of the current financial, a 200% annual increase.
World gold production is about 2,700 tonnes annually and 2,100 tonnes excluding Russia and China. China and Russia reportedly do not export any of their domestic gold production. India does not produce a material amount of gold. 400 tonnes in three months is about 75% of annual world production, excluding China and Russia. One might reasonably expect India's increased demand to elevate gold prices.
http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/jewellery-stocks-tank-titan-industries-plunge-13-per-cent/articleshow/20555339.cms
India seems desperate to prevent an alternative to fiat currency. In addition to increasing the duty on gold imports, the Reserve Bank of India (RBI) has "reiterated its strong resolve to contain the import of gold, by banning advances for the purchase of gold of any kind and reducing the limit up to which loans can be disbursed."
http://economictimes.indiatimes.com/news/economy/finance/rbi-imposes-restrictions-on-lending-against-gold/articleshow/20553966.cms
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