Mumbai, May 2 -- India's gold demand rose to 136.6 tons in the January-March quarter which represents an 8 per cent increase over the same quarter of the previous year, according to figures released by the World Gold Council (WGC).

Gold purchases have increased despite rising prices, reflecting higher incomes in a growing economy, according to market analysts.

Out of the total gold demand, the jewelry demand in India increased by 4 per cent to 95.5 tonne from 91.9 tonne. The total investment demand (in the form of bar, coin among others) grew 19 per cent to 41.1 tonne from 34.4 tonne.

India's gold demand in value terms rose 20 per cent to Rs 75,470 crore during the quarter compared to the same period last year.

The increase in the dem...