India's gold imports for financial year 2014 will be less than 500 tonnes, according to All India Gems & Jewellery Trade Federation (GJF), if the Government does not relax the rules on import restrictions of the yellow metal.

According to GJF chairman Haresh Soni, the sector shall witness major setbacks if the Government does not ease the imports norms and many jobs will be at risk.

India, considered the world's largest consumer of gold, had been instituting a number of measures to reduce its gold imports in a bid to control its growing account deficit. Mr. Soni also said that while the jewellers are ready to help the Government in keeping the gold import at U.S. $30 billion in value terms, it should be done smoothly to help the sector, noting the restrictions have opened the doors to illegal smuggling as well as monopoly.

The total sales are likely to decline by 25 to 30 percent this fiscal compared to last year. Besides, the Government also increased import duty on gold to 10 percent.