The gold Exchange-Traded Fund (ETF) market in India could reach between Rs.5,000 crore ($1.12 billion) and Rs.7,000 ($1.58 billion) by 2009. According to estimates, the current worldwide gold ETF market is around $13 billion, and is likely to reach $15 billion within the next two years.

Since receiving a government nod early this year, gold ETFs have been announced by a number of funds including Birla Sun Life, Escorts Assets Management Ltd., UTI Mutual Fund, Prudential ICICI and Kotak Mahindra.

Benchmark Asset Management Co., an Indian mutual fund which pioneered the concept of the gold ETF in 2002, said its own scheme � which also happens to be India�s first � managed to raise Rs.100 crore ($22.5 million) before closing on February 26. Benchmark will list the fund on the National Stock Exchange in a month.

According to the World Gold Council, India�s gold investment demand grew by 38 per cent to 185.6 tonnes during 2006. Meanwhile, the country�s consumer gold jewellery demand slipped by 14 per cent to 505.5 tonnes over the same span.