UNITED STATES November 08 2016 11:14 AM

NEW DELHI (Scrap Register): Indian gold demand is expected to fall as much as 24% this year to the lowest level in seven years due to higher prices and increased smuggling as the government seeks to bring transparency to bullion purchases.

According to World Gold Council, lower demand from the world's second biggest gold consumer could hurt global spot prices that have risen a fifth so far in 2016, but help the South Asian country to reduce its trade deficit. Gold is one of India's biggest expenses on its import bill.

India's gold demand in the first three quarters of 2016 fell 29 percent from a year ago to 441.2 tons, hit by price rises and government moves such as the mandatory disclose of tax code for high-value jewellery purchases.