India's exports of gold jewellery dropped by nearly 7 per cent month-on-month in October this year, as the government's restrictions on imports of gold also hit exports of the precious yellow metal.

Data released by the Gems & Jewellery Export Promotion Council (GJEPC) revealed that India exported gold jewellery worth $608.95 million in October, down 6.9 per cent from the previous month.  From the start of current financial year to the end of October, India's gold exports slipped by a whopping 55 per cent year-on-year to $3.95 billion.

Industry experts have predicted that the downward trend in exports of gold would likely continue for the rest of current year due to a problem with supplies of the precious metal.

Commenting on the figures, GJEPC Vice-Chairman Pankaj Kumar Parekh said, "Now there is a problem with supplies of gold once again, which will weigh on the exports of November and December."

The World Gold Council (WGC) has predicted that India's demand for gold would likely fall to 900 tonnes during the current financial year, down from the council's own previous prediction of 1,000 tonnes.

As heavy gold imports are one of the key factors responsible for the country's massive current account deficit (CAD), the government has taken several harsh steps over the past few months, such as an all-time high 10 per cent import duty on the metal.