India, the world’s biggest bullion importer, bought only 30-35 tonnes of the yellow metal in April, down from 90 tonnes in the same month a year ago.
Industry groups said that that the increase in import duties had dented demand, reports said.
Demand remains dull in India as prices trade near record levels due to a decline in the local currency, reports said quoting Prithviraj Kothari, president of the Bombay Bullion Association.
In the Union Budget 2012, Finance Minister Pranab Mukherjee had proposed the doubling of customs duty to 4% form 2% on gold bars, coins and platinum.