"Calculated on the basis of CAGR of period 2010-11 over 1999-2000, the gold import bill could total USD 100 billion by 2015-16," it said in the report released today.

The report said that at these levels, "gold imports are a huge burden on the balance of payments and accentuates the current account deficit".

On the other hand, it represents a massive strain on investable resources and weaning away domestic savings from gold assume importance, it added.

According to RBI, the current account deficit is a cause of concern because of inelastic gold and oil demand, it said.

With the government increasing import and excise duties on gold and silver, both commodities are set to cost more.

Terming the current gold import as huge burden on the balance of payments, the chamber has urged the government to encourage formal financial instruments to make the investment more productive.

"India's gold imports are unsustainable and the government should encourage channelising savings in formal financial instruments to increase productive capacity of the economy," it said.

It said efforts must be made to introduce more financial saving instruments and extensive education campaigns should be undertaken - particularly in rural areas - to minimise propensity towards gold.

The report said that post offices should be used to sell such government guaranteed instruments to extend their reach throughout the country.