FACTBOX-India's gold industry - what's changing, what's not

MUMBAI, Sept 22 (Reuters) - India's centuries-old gold industry is the world's biggest market for the metal, with imports meeting almost all of the country's requirements for jewellery and investment.

While some aspects of the industry remains unchallenged, there are some shifts taking place, particularly in consuming patterns.

Here's a list of some facts on the industry and some changes taking place:

- India has imported 600-800 tonnes of gold a year in the past five years, but imports are set to fall this year as high prices have discouraged purchases in the world's top consumer of the precious metal.

- Imports are high because of the large population. Per capita gold consumption is only 0.7 grams, half that of the US and one-third of the Middle East, according to World Gold Council (WGC) estimates.

- India's gold market is estimated to have 300,000-plus jewellers, mostly small-family run businesses according to a study done by WGC. - Only 23 banks and some private and government trading agencies have licences to import gold because of its implications for foreign exchange flows.

- In the 2009/10 budget, the import duty on gold was doubled to 200 rupees ($4.15) per 10 grams, and on silver it was doubled to 1,000 rupees per kg.

- Investment purchases of gold have been rising faster than jewellery purchases. WGC's latest data shows the investment to jewellery ratio is approximately at 30:70.

- Paperless gold in the form of exchange-traded funds is rising. Launched in 2007, total collection between six fund houses is over 6 tonnes.

- In urban areas, gold faces competition from diamonds as incomes have risen but higher purchasing power of the lower and middle sections of the population has brought new customers to the market.

- Large corporate jewellers such as Titan Industries (TITN.BO), Reliance Jewels and Rajesh Exports (REXP.BO) are pervading the retail market with plans to have hundreds of shops hoping to push sales with the help of their branding. - India's imports of gold in the last five years in metric tonnes, as per World Gold Council data:

Gold imports

2008 712.6

2007 769.2

2006 715.5

2005 721.6

2004 614.5

For a graphic on India's gold imports and prices since 1997, click on: r.reuters.com/cap84d ($1=48.20 rupees) (Reporting by Ruchira Singh; Editing by Himangshu Watts and John Mair)