India, the world's largest consumer of gold, is seen importing 35 tonnes of the metal in December, down 12.1 percent from a year ago, the median estimate in a poll of 10 importers and wholesalers showed. The fall in imports would be for a second straight month as the traditional wedding season wound down and traders refrained from taking fresh positions going into the new year.
Traders could start re-stocking gold in the third week of January, when the next harvesting season starts and farmers use new disposable income to buy. There could also be some buying ahead of the February budget as traders think there may be another increase in import duty.