Govt considering mandatory hallmarking for gold bullion

The Indian government is considering mandatory hallmarking for gold bullion to protect consumers and ensure quality across the gold supply chain, Consumer Affairs Secretary Nidhi Khare said at a Confederation of Indian Industry (CII) conference on gems and jewellery on Friday.

This potential regulation follows the successful implementation of mandatory hallmarking for gold jewelry and artifacts, which began on June 23, 2021. Over 40 crore gold jewelry items now carry a unique Hallmark Unique Identification (HUID) number.

Khare explained the rationale behind the proposed change and said that the idea is to be sure of quality of gold. "The whole idea is that while jewelers are actually importing gold, many times, they themselves are not sure about the quality of gold that they are receiving or they are buying. So I think the entire value chain needs to be identified for its correctness, for its accuracy, for honesty and truthfulness,” she said.


The government is also developing regulations for lab-grown diamonds to protect consumers buying natural diamonds. The secretary noted the growing demand for lab-grown diamonds.

Khare highlighted the gems and jewelry sector's importance to the Indian economy, projecting its market size to reach $134 billion by 2030 from around $44 billion in 2023. She noted the sector's contribution to exports and employment, with India being the second-largest gold exporter globally.

“The government of India recognizes the potential of this sector and has also designated it as a priority area for export promotion,” Khare said.

Since mandatory hallmarking for gold jewelry began, the number of registered jewelers has increased to roughly 1.95 lakh, and Assaying and Hallmarking Centers (AHCs) now number over 1,600.

Khare encouraged the industry to promote Indian jewelry in international markets.

Gems and Jewellery Export Promotion Council (GJEPC) Executive Director Sabyasachi Ray supported mandatory hallmarking for gold bullion to ensure raw material quality.

(With inputs from PTI)