Hallmarking restrictions push gold biz to informal sector

A BIS notification limits hallmarking of ornaments to three purities of gold

Around half the jewellery hallmarking business has shifted to the non-hallmarking segment, which is mostly controlled by unorganised sector players, due to a notification restricting hallmarking of only three purities of gold ornaments.

Effective January 1, 2017, the Bureau of Indian Standards (BIS) has confined hallmarking of jewellery to ornaments with 22 carat, 18 carat and 14 carat gold. Of these categories, ornaments with 22 carat and 18 carat are dominant, as consumers normally do not prefer jewellery made with 14 carat gold. Hallmarking of gold ornaments is also optional for most consumers in India.

"Since hallmarking has been confined to jewellery