The Indian government is exploring a proposal to introduce mandatory hallmarking for gold bullion, extending its existing hallmarking framework for jewellery.
Consumer Affairs Secretary Nidhi Khare announced the initiative during the CII Gems and Jewellery conference, emphasising the need for quality and accuracy throughout the gold value chain.
Expanding Hallmarking Standards
Since mandatory hallmarking for gold jewellery and artefacts was introduced in June 2021, over 40 crore gold items have been hallmarked with a unique HUID (Hallmark Unique Identification), offering consumers greater confidence in product quality.
Khare confirmed that hallmarking for bullion is under consideration to enhance trust and transparency. She explained, “The entire value chain needs to be identified for its correctness, accuracy, honesty, and truthfulness.”
Economic Significance of the Jewellery Sector
India’s gems and jewellery market is valued at $44 billion and is projected to reach $134 billion by 2030. The sector accounts for 3.5% of India’s total exports, making India the second-largest gold exporter globally.
Khare reiterated the government’s focus on export promotion, recognising the sector as a priority area.
Rise in Registered Jewellers and Hallmarking Centres
The introduction of hallmarking regulations has driven an increase in compliance. There are now around 1.95 lakh registered jewellers and over 1,600 Assaying and Hallmarking Centres (AHCs) operating across India.
Emerging Focus: Lab-Grown Diamonds
The Department of Consumer Affairs is drafting regulations for lab-grown diamonds to safeguard consumers purchasing natural diamonds, which are significantly more expensive. Khare noted the rising demand for lab-grown alternatives and encouraged efforts to promote Indian jewellery internationally.
Calls for Industry Collaboration
Sabyasachi Ray, Executive Director of the Gems and Jewellery Export Promotion Council (GJEPC), voiced support for mandatory hallmarking of bullion. “Mandatory hallmarking of gold bullion will ensure the integrity of the supply chain and reinforce trust in the market,” he said.
The move towards hallmarking bullion represents a step forward in bolstering quality assurance across the jewellery industry.
