"Demand for gold must be moderated... We may be left with no choice but to make it more expensive to import gold. The matter is under government consideration," he told reporters.

Gold import is a major constituent of India's rising Current Account Deficit (CAD). The CAD, which represents the difference between exports and imports after considering cash remittances and payment, widened to a record high of 5.4 per

cent of GDP, or 22.3 billion, in the July-September quarter.

In value terms, gold imports stood at USD 20.2 billion in the April-September period of the current fiscal, a decline of 30.3 per cent over the corresponding period a year ago.

For the entire 2011-12 fiscal, gold imports stood at USD 56.2 billion.

The decline was mainly on account of increase in customs duty on gold imports by government in January and March 2012.

In his Budget proposal, the then Finance Minister Pranab Mukherjee had doubled the basic customs duty on standard gold bars to four per cent and on non-standard gold to 10 per cent.

He also imposed one per cent excise duty on unbranded jewellery, which was subsequently rolled back after protest from jewellers across the country.

Currently, the government is also making efforts to channelise investor money into equities and other financial instruments to reduce demand for the yellow metal.