GS PAPER III: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context: The government announced the phased implementation of mandatory hallmarking of gold jewellery with effect from June 16.

• In the first phase, gold hallmarking will be available in only in 256 districts and jewellers having annual turnover above Rs 40 lakh will come under its purview.

What is hallmarking of gold?

• The Bureau of Indian Standard (BIS), which operates gold and silver hallmarking scheme in India, defines hallmarking as the “accurate determination and official recording of the proportionate content of precious metal in precious metal articles.”
• So, it is a “guarantee of purity or fineness” of precious metal articles.

Which metals are covered hallmarking in India?

• The government, through a notification issued on June 14, 2018, notified two categories—gold jewellery and gold artefacts; and silver jewellery and silver artefacts—under the purview of hallmarking.
• So, hallmarking in India is available for jewellery of only two metals—gold and silver.
• However, a certain category of jewellery and items will be exempted from the mandatory requirement of hallmarking.
• Export and re-import of jewellery as per Trade Policy of Government of India — Jewellery for international exhibitions, jewellery for government-approved B2B domestic exhibitions will be exempted from mandatory Hallmarking.
• Watches, fountain pens and special types of jewellery such as Kundan, Polki and Jadau will be exempted from hallmarking.

What are the purity standards for gold and silver under the hallmarking scheme?

• As per BIS standards, there are three categories of hallmarking based on purity of gold—22 carat, 18 carat and 14 carat.
• Gold of Additional carats 20, 23 and 24 will also be allowed for Hallmarking.”
• Jewellers can continue to buy back old gold jewellery without a hallmark from consumers.

What was the need of making hallmarking mandatory?

• India is the biggest consumer of gold. However, the level of hallmarked jewellery is very low in the country.
• According to the ministry, at present, only 30% of Indian gold jewellery is hallmarked.
• One of the reasons responsible for low level of hallmarked jewellery is non-availability of sufficient assaying and hallmarking centres.

https://indianexpress.com/article/explained/what-is-gold-hallmarking-list-of-districts-where-it-is-mandatory-7361818/

Download PDF