Gold demand has surely taken a hit in India in the last few months as Indian have been traditionally averse to buying gold at all-time high prices. Even as the global gold prices are still below the 2011 peak, Indian gold prices have scaled new highs. For the price sensitive Indian gold market, the impact is clearly visible in gold demand. For example, according to a report in Reuters, the Indian gold demand for March 2020 has fallen to a 7-year low of just 25 tons, as against 93 tonnes an year ago. That is a fall of nearly 73% from the previous year levels. The combination of uncertain income growth and high gold prices has made the traditional gold buyer wary and that is reflected in the gold demand numbers. For the RBI and the government, it will be a good problem to have because precious foreign exchange is not being utilized to import gold, which is an unproductive investment anyways.