NEW DELHI: With gold prices rising and purchases a major component of household savings, the government has extended mandatory hallmarking to 380 districts to protect consumers and strengthen quality oversight in India’s gold jewelery market, according to a March 3 government order reviewed by Mint.
The move comes through the Hallmarking of Gold Jewelery and Gold Artifacts (Amendment) Ordinance 2026, which replaces the District Plan under the Ordinance 2020. Mandatory hallmarking was first phased in in 2021, initially covering 256 districts, mostly large commercial centres. The expansion reflects an effort to bring smaller regional markets under the Bureau of Indian Standards (BIS) certification scheme.
India has about 800 districts.
As of 2021, over 580 million gold objects have been minted under the scheme, an average of more than 10 million per 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 objective. BIS hallmarking certifies purity through accredited testing centers and allows buyers to verify gold content using unique identification marks.
“The move indicates a gradual shift in political focus from large metropolitan jewelery markets to smaller regional centers 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 metros. Making hallmarking mandatory here will help ensure that consumers receive gold of the right quality and pay for genuine products.”
“Mandatory hallmarking plays a key role in protecting consumers, especially at a time when gold prices are soaring. It ensures buyers get the purity they’re paying for and helps build confidence in jewelry purchases, especially in smaller markets where independent verification of gold quality has traditionally been limited,” said Ashim Sanyal, executive director of Consumer Voice, a consumer advocacy organization.
India is one of the world’s largest consumers of gold. While domestic demand fell by 11% to 710.9 tonnes in 2025 from 802.8 tonnes in 2024, demand value increased by 30% to ₹7.51 trillion, driven by record high prices. Investment demand also surged, underscoring a structural shift where price escalation rather than volume growth is driving the impact on trade.
Despite the expansion, roughly 400 districts remain outside the scope of compulsory stamp duty, suggesting that roll-out will continue in phases as infrastructure develops and markets grow.
