Gold jewellery demand in India, a major global market, is estimated to have risen 5 to 7 per cent in 2011 and is set to grow a further 10 to 15 per cent this year with bullion prices falling back after recent gains.

India's jewellery demand dropped 26 per cent in the third quarter of 2011 to 125.3 tonnes, hit by strong price swings and a weaker rupee, the industry-funded World Gold Council has said.