Government considers gold bullion hallmarking amid rising jewellery market prospects 

Following the success of jewellery hallmarking, bullion regulation will safeguard consumer interests. As the market gears towards a $134 billion valuation by 2030, the focus is also shifting to regulating lab-grown diamonds 

 Mumbai: The Indian government is contemplating the introduction of mandatory hallmarking for gold bullion to enhance consumer protection and ensure the consistency of gold quality throughout the supply chain, according to Consumer Affairs Secretary Nidhi Khare. She announced a Confederation of Indian Industry (CII) conference on gems and jewellery on Friday. 

This potential regulation comes after the successful enforcement of mandatory hallmarking for gold jewellery and artefacts, which began on June 23, 2021. Since then, over 40 crore gold jewellery items have been marked with a unique Hallmark Unique Identification (HUID) number, ensuring their authenticity and quality. 

Khare explained the motivation behind extending hallmarking to gold bullion, emphasizing the need to guarantee the purity of gold at every stage of the supply chain. “The whole idea is that while jewellers are importing gold, they themselves are often unsure about the quality of gold they are receiving. Therefore, it is crucial to ensure the accuracy, honesty, and reliability of the entire value chain,” she said. 

In addition to gold, the government is also developing regulations to address the growing demand for lab-grown diamonds, aiming to protect consumers purchasing natural diamonds. Khare acknowledged the rise of lab-grown diamonds and stressed the importance of maintaining transparency in the sector. 

Khare highlighted the critical role of the gems and jewellery industry in India’s economy, forecasting that the market could reach $134 billion by 2030, up from $44 billion in 2023. She also pointed out the sector’s significant contributions to exports and employment, with India positioned as the second-largest gold exporter worldwide. 

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

Since the introduction of mandatory hallmarking for gold jewellery, the number of registered jewellers has grown to approximately 1.95 lakh, with over 1,600 Assaying and Hallmarking Centers (AHCs) now operating across the country. 

Khare also encouraged the industry to focus on promoting Indian jewellery in international markets to further bolster the sector’s global presence. 

Sabyasachi Ray, Executive Director of the Gems and Jewellery Export Promotion Council (GJEPC), echoed Khare’s sentiment, expressing support for the mandatory hallmarking of gold bullion as a critical step in ensuring the quality of raw materials in the industry. 

 
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