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The Government of India has made this move to regulate the quality of gold being sold in the market and safeguard the interests of consumers; starting from April 1, 2023, gold jewellery without hallmarking cannot be sold in India.
Hallmarking is a process through which the purity of gold is verified and certified by an independent agency, such as the Bureau of Indian Standards (BIS). The hallmarking process involves assaying the purity of gold in a sample and stamping it with a unique hallmark indicating the purity level. The hallmarking process also verifies other aspects of the jewellery, such as the material’s weight and authenticity.
Introducing this new rule is expected to have a remarkable impact on the jewellery market in India. Gold is an integral part of Indian culture and tradition and is often used in religious ceremonies, weddings, and other important events. According to industry estimates, the Indian gold jewellery market is worth over Rs. 3.5 lakh crore, and the new rule is expected to bring greater market transparency and accountability.
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While the rule is expected to bring greater transparency and accountability to the market, it may also lead to problems, such as a temporary shortage of gold jewellery and an increase in prices. Here are some ways to tackle these problems:
The Government must ensure sufficient infrastructure to support the hallmarking process, including assaying centres and certification agencies. The government must also support small and medium-sized jewellery manufacturers and retailers to help them comply with the new rule. Industry players must also educate consumers about the benefits of hallmarking and the importance of buying high-quality gold jewellery. Retailers will need to ensure that they have sufficient stocks of hallmarked jewellery to meet the consumers’ demand.
In conclusion, the new rule that gold jewellery without hallmarking cannot be sold from April 1, 2023, is a step towards regulating the quality of gold jewellery sold in the market and protecting the interests of consumers. While it may lead to some initial challenges, such as a temporary shortage of gold jewellery and an increase in prices, these can be addressed through measures such as increasing awareness, increasing production, managing prices, providing support, and ensuring compliance. Implementing the hallmarking rule is expected to bring greater transparency and accountability to the market and ensure consumers have access to high-quality hallmarked jewellery. By working together, the government, industry players, and certification agencies can ensure that implementing the hallmarking rule is a success and that the market remains sustainable and competitive in the long run.
Also Read:Gold Loan Market in India: Growth and Its CausesHow much Gold/Gold Ornaments can you hold?
Minakshi Bindhani has completed LL.M. with a specialization in Criminal Law from Madhusudan Law University, Cuttack, Odisha. She is more inclined toward legal research and writing and have prior experience in Civil and Criminal litigation and content writing.
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