Centre prepares to Mandate Hallmarking for Gold Bullion

The Indian government is preparing to make hallmarking mandatory for gold bullion. This announcement was made by Consumer Affairs Secretary, Nidhi Khare, at the Gems and Jewellery Conference organized by the Confederation of Indian Industry (CII) in New Delhi. The hallmarking process, which has already seen more than 40 crore gold jewellery items hallmarked to date, with over 4 lakh gold items being hallmarked per day, has revolutionized the jewellery industry by instilling trust and transparency.

The government’s decision to make hallmarking mandatory is a significant step towards ensuring quality, traceability, and consumer confidence across the entire value chain. The hallmarking process involves the use of a six-digit unique ID system. This system, according to Khare, has been instrumental in ensuring quality and traceability, thereby boosting consumer confidence. The automation of hallmarking processes, such as the API-based integration of XRF data, represents a leap forward in quality assurance, streamlining operations, and enhancing efficiency for both jewellers and consumers.

The hallmarking initiative is part of a broader vision for India ‘s jewellery sector. Khare emphasized the need for Indian manufacturers to create aspirational global brands. Drawing inspiration from centuries-old European houses, she urged Indian manufacturers to align their heritage with modern consumer preferences in different markets across the globe to leave a lasting imprint. The mandatory hallmarking initiative has already had a significant impact on the industry. Since its launch, the number of registered jewellers has increased from 34,647 to 1,94,039 – a notable increase of more than five times. Similarly, the number of assaying and hallmarking centres (AHCs) has grown from 945 to 1,622, according to the Ministry of Consumer Affairs.

The Gems and Jewellery Export Promotion Council (GJEPC) Executive Director, Sabyasachi Ray, highlighted that India’s gems and jewellery industry has emerged as one of the most compliant sectors globally. The industry adheres to high ethical standards and transparency through hallmarking, GST implementation, and the Kimberley Process for conflict-free diamonds. Ray also pointed out the success of free trade talks (FTAs) with the UAE and Australia as examples of how strategic economic diplomacy can elevate the jewellery industry. By focusing on high-growth regions and reducing export duties, India is creating a conducive ecosystem for scaling up global trade.