BIS Gold Hallmarking in India: How the New 9-Carat Amendment is Transforming Lives and Markets

Understanding BIS and Gold Hallmarking

The Bureau of Indian Standards (BIS) is India’s national standards body, established under the Ministry of Consumer Affairs, Food and Public Distribution. BIS hallmarking is designed to protect consumers against victimization due to irregular gold or silver quality, and to develop India as a leading gold market centre in the world. Similar to how RBI Master Directions ensure compliance in foreign direct investment, BIS regulations maintain quality standards in the precious metals sector.

Hallmarking is a quality certification process that guarantees the purity and fineness of precious metals. According to BIS, hallmarked gold items are inscribed or stamped with four components to ensure the purity of gold. This system provides consumers with confidence in their gold purchases and protects them from fraudulent practices.

The Current Hallmarking System

In India, at present two precious metals namely gold and silver have been brought under the purview of Hallmarking. The process requires jewelers to register with BIS and ensures that all gold jewelry meets specific purity standards before being sold to consumers. This regulatory framework demonstrates India’s commitment to consumer protection across various sectors – from precious metals to financial services, as detailed in our comprehensive compliance guides and regulatory updates.

The Revolutionary 9-Carat Gold Amendment

What’s New?

The Bureau of Indian Standards began the fourth phase of mandatory hallmarking under the Hallmarking of Gold Jewellery and Gold Artefacts Amendment Order, 2024 from November 5, 2024. However, the most significant change is that it will also be mandatory to hallmark 9 karat gold with effect from July 2025.

Why This Change Matters

The decision to include 9-carat gold in mandatory hallmarking comes at a time when gold prices have soared. The government now allows 9 carat gold to be officially hallmarked from July 2025, making jewellery more affordable and regulated as prices near ₹1 lakh per 10g for higher purity gold.

Price Comparison Analysis

Gold Purity	Price per 10g (Approx.)	Target Market
9 Carat	₹37,000 – ₹38,000	Budget-conscious buyers
18 Carat	₹65,000 – ₹70,000	Mid-range consumers
22 Carat	₹95,000 – ₹1,00,000	Premium buyers
24 Carat	₹1,05,000 – ₹1,10,000	Investment purposes

According to estimates, 9-carat gold currently costs around ₹37,000 to ₹38,000 per 10 grams, while 22-carat gold jewelry requires at least ₹1 lakh.

Impact on Common People’s Lives

Enhanced Affordability

The inclusion of 9-carat gold in the hallmarking system directly addresses the affordability crisis in India’s gold market. By making 9 carat gold (which costs roughly ₹38,110 per 10 grams, including GST) part of the hallmarking system, the government aims to make gold jewellery more affordable, especially for budget-conscious buyers.

Target Demographics

The decision to make hallmarking mandatory for 9-karat gold jewelry is driven by the growing preference for more affordable gold jewellery, especially among younger consumers. This change particularly benefits:

• Young professionals starting their careers
• Rural consumers with limited purchasing power
• First-time gold buyers looking for authentic products
• Festival shoppers seeking affordable options

National Impact on India

Economic Implications

The amendment is expected to have far-reaching effects on India’s economy:

Market Expansion: By making gold more accessible, the policy could significantly expand the addressable market, potentially increasing overall gold consumption despite lower per-unit value.

Rural Market Penetration: Industry insiders believe hallmarking 9K gold will help cater to rural consumers and younger urban buyers with limited budgets.

Employment Generation: Increased demand for 9-carat gold could boost employment in jewelry manufacturing, especially in traditional jewelry-making clusters.

Security and Traceability

The move also aims to curb rising chain-snatching incidents by making gold items more traceable. Each hallmarked piece comes with a unique identification number, making stolen jewelry easier to track.

Global Positioning

This initiative supports BIS’s objective to develop India as a leading gold market centre in the world and to develop export competitiveness. Just as India strengthens its position in global finance through robust regulatory frameworks like the RBI’s FDI compliance guidelines, the gold hallmarking initiative positions India as a trusted destination for precious metals trade internationally.

Benefits of the New Amendment

For Consumers

1. Quality Assurance: BIS hallmarking guarantees that the gold meets precise purity standards
2. Price Accessibility: Significant cost reduction compared to higher-carat alternatives
3. Fraud Protection: Hallmarking protects customers from being duped by dishonest business tactics
4. Investment Confidence: Standardized quality makes 9-carat gold a reliable entry-point investment

For the Industry

1. Market Expansion: Access to previously untapped price-sensitive segments
2. Standardization: Uniform quality standards across all gold categories
3. Export Opportunities: International recognition of Indian hallmarking standards
4. Innovation Incentive: Encouragement for jewelry designers to create affordable collections

For the Economy

1. Increased Gold Consumption: Potential boost in overall gold demand
2. Financial Inclusion: More people can participate in gold ownership
3. Rural Development: Enhanced access to quality gold in rural areas
4. Tax Revenue: Increased legitimate gold trade leading to higher tax collections

Disadvantages and Challenges

Implementation Challenges

Infrastructure Requirements: Expanding hallmarking centers to accommodate increased volume

Training Needs: Educating jewelers and consumers about 9-carat gold properties

Cost Implications: Additional compliance costs for smaller jewelers

Market Concerns

Perception Issues: Some consumers may view 9-carat gold as inferior

Investment Value: Lower gold content means reduced investment appeal

Resale Challenges: Potential difficulties in reselling 9-carat jewelry

Technical Limitations

Durability Concerns: Lower gold content may affect longevity

Color Variations: 9-carat gold has different color properties than higher purities

Craftsmanship Adaptation: Jewelers need to adapt techniques for lower-purity gold

How BIS Hallmarking Works

The Hallmarking Process

1. Registration: Jewelers must register with BIS through the online portal
2. Testing: Gold items undergo rigorous purity testing
3. Marking: Approved items receive four distinct marks:
   • BIS logo
   • Purity/fineness (e.g., 375 for 9-carat)
   • Assaying and Hallmarking Centre’s mark
   • Jeweller’s identification mark

Quality Standards

Carat	Gold Content	Fineness	Common Uses
9K	37.5%	375	Affordable daily wear
14K	58.3%	583	Fashion jewelry
18K	75.0%	750	Premium jewelry
22K	91.7%	916	Traditional Indian jewelry
24K	99.9%	999	Investment gold

Verification Process

Consumers can verify hallmarked gold through:

• Physical inspection of hallmark symbols
• BIS mobile application
• Online verification portal
• Authorized testing centers

The Future of Gold Retail in India

Market Projections

This move could revive demand in price-sensitive markets. Urban millennials and Gen Z buyers are showing growing interest in affordable, trendy jewelry.

Technology Integration

The hallmarking system increasingly incorporates digital technologies:

• QR codes for instant verification
• Blockchain for supply chain transparency
• Mobile apps for consumer education
• Online registration portals for jewelers

Evolving Consumer Behavior

The amendment reflects changing consumer preferences:

• Preference for certified products over traditional trust-based purchases
• Demand for affordable luxury items
• Increased awareness about gold purity standards

Conclusion

The BIS amendment mandating hallmarking for 9-carat gold represents a watershed moment in India’s gold industry. By making quality-assured gold jewelry accessible to budget-conscious consumers, this policy addresses both market demands and consumer protection needs.

While challenges exist in implementation and market acceptance, the long-term benefits—including increased financial inclusion, enhanced consumer protection, and market expansion—far outweigh the initial hurdles. This amendment positions India as a progressive leader in precious metals regulation while ensuring that the cultural significance of gold remains accessible to all economic segments of society.

The success of this initiative will depend on effective implementation, consumer education, and industry cooperation. As India moves toward this new era of inclusive gold retail, the 9-carat hallmarking amendment stands as a testament to responsive policymaking that balances tradition with modern consumer needs.