According to the latest data released, the country's total Assets under management of exchange traded funds (ETFs) for Gold increased 161 percent to 97.95 billion rupees backed by strong demand in the country.

India, which is the biggest consumer of bullion, has 12 mutual funds that offer gold exchange traded funds to investors. The country's Gold ETF is much lower than the annual gold consumption, which stands at about 700 tonnes per annum. However, experts say that the ETF holdings could increase by as much as 50 percent compared to a year earlier.

An industry body representing jewelers in the country ahs urged the government to scrap gold units in Exchange Traded Funds or introduce a 25 percent commodity transaction tax on these funds in order to protect the interests of jewelers in the country.

All India Gems and Jewellery Trade Federation (AIGJTF) chairman Bachhraj Bamalwa said that the move was necessary to avoid the losses suffered by the jewelers on accounts of people buying gold from the ETFs.

"Now, 25-30 percent of gold imports are shifting to gold ETF investment," Bamalwa said.