"Despite an eight per cent fall in demand during the third quarter of this year, India's total consumption will be around 800 tonnes," WGC manager (north) GS Pillai said.

The record consumption is against 737 tonnes consumed in India, world's largest gold consumer, last year.

India's gold consumption declined to 121.9 tonnes during the third quarter this year compared to 132.6 tonnes during the corresponding period in 1997.

The fall was against a record 200.5 tonnes consumption by the country during the first quarter. Offtake during the second half had also remained at a high 156.9 tonnes.

Compared to the total consumption during the first three quarter last year, offtake during the first three quarters was higher by 19 per cent at 479.4 tonnes.

In its report for the thirdquarter, WGC, an international body funded by leading gold mining firms across the globe, said economic problems appeared to have dampened consumer demand during the quarter.

Pillai said the marginal uptrend was likely to continue through the next year. Subash Bhola, a leading jewellery trader in the capital, said after a dull trading during Navratras and Diwali, demand for the yellow metal had picked up of late.

"Demand for gold is back and we are doing good business now. It is an indication that kharif harvest has been good this season," he said, adding that sales would be good in 1999 also.

Meanwhile, WGC is going ahead with the plans to promote jewellery exports in India through various measures.

"Our objective is to see that India garners at least 10 per cent of the global jewellery business worth 65 billion US dollars from the present one per cent," Pillai said.

One of the measures to push exports was to improve technology of hand-made jewellery for which WGC was roping in experts, hesaid.

Besides, a jewellery fashion book had been brought out with the help of national institute of fashion technology.

"We worked with 10 leading jewellers to bring the book," he said, adding plans were also afoot to set up an institute for fashion jewellery making.

"We have to ensure that this trade is in the hands of efficient people," Pillai said. A one-day seminar is also being held in the capital tomorrow to awaken jewellery makers to the reality of export market.