India Gold

India consumes anywhere between 600 to 700 tonnes of gold ( $6-7 billion) annually.
But domestic production of gold is only about 2 tonnes per annum.

Furture predicts India at gold consumption of 900 tonnes/year.

Globally, India is ranked sixth in the top-ten list of the gold and currency reserves:
The first three positions are being held by Japan, Russia and China.

March 2006 Data India Central Bank ::
$145.1 billion foreign currency assets
$35.2 billion was invested in securities
$65.4 billion was deposited with other central banks -- BIS & IMF
$44.5 billion was in the form of deposits with foreign commercial banks.

According to former Reserve Bank of India deputy governor S S Tarapore gold as a reserve asset has a longer and more enduring history than flat money. S S Tarapore has argued that it is time India increased the gold reserves in tune with the booming economy.