Centre expands mandatory gold hallmarking to 380 districts to strengthen consumer protection

NEW DELHI: With gold prices surging and purchases forming a major component of household savings, the government has expanded mandatory hallmarking to 380 districts, aiming to safeguard consumers and strengthen quality oversight in India’s gold jewellery market, according to a government order3 March, which was reviewed by Mint.

The move comes through the Hallmarking of Gold Jewellery and Gold Artefacts (Amendment) Order, 2026, which replaces the district schedule under the 2020 order. Mandatory hallmarking was first introduced in phases in 2021, initially covering 256 districts, largely major trade centres. The expansion reflects a push to bring smaller, regional markets under the Bureau of Indian Standards (BIS) certification system.

India has about 800 districts.

Since 2021, over 580 million gold items have been hallmarked under the regime, averaging more than 10 million pieces a month. The updated coverage includes many tier-2 and tier-3 districts across major gold-consuming states such as Bihar, Uttar Pradesh, Tamil Nadu, Maharashtra, Gujarat, Karnataka and West Bengal.

Consumer protection remains a key goal. BIS hallmarking certifies purity through accredited assay centres and allows buyers to verify gold content via unique identification marks.

“The move indicates a gradual shift in policy focus from large metropolitan jewellery markets to smaller regional centres where gold trade volumes have grown significantly in recent years” said Ashish Kumar Singh, president of Citizen Forum, a civil rights group in Bihar. “In districts like Katihar, consumer awareness is not at the same level as in metro cities. Making hallmarking mandatory here will help ensure that consumers receive the right quality of gold and pay for genuine products.”

“Mandatory hallmarking plays a crucial role in protecting consumers, especially at a time when gold prices are rising sharply. It ensures that buyers get the purity they pay for and helps build trust in jewellery purchases, particularly in smaller markets where independent verification of gold quality has traditionally been limited,” said Ashim Sanyal, chief executive officer of Consumer Voice, a consumer advocacy organization.

India is one of the world’s largest gold consumers. While domestic demand fell 11% to 710.9 tonnes in 2025 from 802.8 tonnes in 2024, the value of demand rose 30% to ₹7.51 trillion, driven by record-high prices. Investment demand also surged, highlighting a structural shift where price escalation, rather than volume growth, drives trade impact.

Despite the expansion, roughly 400 districts remain outside the mandatory hallmarking framework, indicating that the rollout will continue in phases as infrastructure develops and more markets are brought.