Strict rules on gold imports are succeeding in curbing demand from India, with the nation likely to lose its crown as the world’s biggest consumer of the precious metal to China, the World Gold Council said.

The producer-funded industry body cut its forecast for demand from India in 2013 to around 900 tonnes from the 1,000 tonnes predicted previously, although that would still mark a slight rise from last year.”The administrative measures that the Indian government has imposed on the market have proven to be quite effective and imports have slowed down,” Albert Cheng, WGC’s managing director for the Far East region said. “It would be difficult to get to 1,000 tonnes.”

India, grappling with a high trade deficit and a weak rupee, imposed a series of measures this year to crimp demand for the metal – the second most expensive item on its import bill after oil.