Fix gold quality: World Gold Council

It said that since the introduction of a hallmarking standard in 2000 by the Bureau of Indian Standards (BIS) India has made progress in developing its hallmarking system. However, only 30 per cent of Indian gold jewellery is currently hallmarked. There are widespread differences in purity and an average under-caratage of anywhere from 10 per cent to 15 per cent, said WGC.

Small shops employing generational craftsmen dominate the 400,000 jeweller-strong industry in India. Most of them have yet to adopt standards launched in 2000 due to a shortage of hallmarking centres and added costs.

“India’s overseas sales of jewellery are just eight per cent of the global gold market as buyers in places such as the Middle East, where hallmarking is stringent, do not trust the purity or quality of Indian exports,” said WGC. It said that lack of BIS-recognised hallmarking centres across the country is also likely to have an impact on the successful implementation of the government’s gold monetisation scheme which is dependent upon the collateralisation value of gold.

“The trust and confidence which comes with a credible nationwide hallmarking system will underpin the growth of gold jewellery exports, boosting the Indian industry’s credibility in the global jewellery sector. It is a fundamental requirement if the industry wants to have a bigger role in the ‘Make in India’ ambition and eventually position India as ‘jeweller to the world’,” said Somasundaram P.R., MD (India), WGC.

He pointed out that “hallmarking is to jewellery what ’know your customer’ norms are for financial services it is essential to the success of the jewellery industry in a world where consumers seek transparency, quality and consistency and is critical to building consumer trust and confidence.”