June 17, 2021
Hallmarking offers consumers confidence assuring them of the purity/credibility of gold.
Hallmarking will begin at the 256 districts in the country which have assaying and hallmarking (A&H) centres.
Under the new set of rules, old jewellery without hallmarking can be bought back from consumers.
Gems and jewellery have been declared as a focus area for export promotion based on its growth potential in the coming years.
With an aim to safeguard customers from adulteration of precious metals, the Ministry of Consumer Affairs, Food & Public Distribution has made it compulsory for all gold jewellery to be hallmarked with effect from June 16, 2021. Hallmarking of any precious metal, officially authenticates the purity of the metal after a thorough examination of its immaculacy, and is certified by the Bureau of Indian Standards (BIS) This ensures customer satisfaction enabled through the assurance of the purity of gold or any other metal. The announcement was made via a press release on June 15, 2021. The set of new rules were brought into existence after extensive discussions with stakeholders. Under this new scheme, a committee consisting of representatives of all stakeholders, revenue officials and legal experts will examine the issues which may possibly emerge during its implementation.
Post certification from assaying and hallmarking (A&H) centres, jewellers are registered under the BIS hallmarking scheme enabling the sale of hallmarked jewellery. In the past five years there has been a significant rise in the number of A & H centres which now number 940 . With a certification of its adherence to international standards of gold purity through hallmarking, India has the potential to emerge as a leading market for gold globally. As of January 2021, gold, diamond jewellery and artefacts constitute up to 7.5 percent of the country’s GDP and 14 percent of the total merchandise exports. According to data from the India Brand Equity Foundation (IBEF), the gold jewellery sector is likely to employ 8.23 million persons by 2022, as compared to 5 million in 2020. It also mentions the various measures taken by the government to promote the enhancement of the skills and technology to improve the sector’s position on a global platform Such measures include the permit for a 100 percent FDI in the sector under the automatic route which removes the need for prior approval from the RBI for foreign investors.
The increasing development of large retailers/brands is also expected to contribute to the growth of the sector in the coming years, and will play a pivotal role in facilitating the shift from the unorganised to organised sector.. Additionally, online sales forecasted to account for almost 2 percent of the sector’s growth by 2022, along with the reintroduction of low-priced gold loans and an estimated stabilisation of gold prices point towards the significant increase in the demand for gold jewellery in the coming years.