9K Gold Hallmarking Mandate: Transforming India’s Gold Market and Consumer Trust

In July 2025, the Bureau of Indian Standard (BIS) mandated hallmarking for 9-Karat (9K) gold, expanding the existing framework that covers 14K, 18K, 20K, 22K, 23K, and 24K gold. This policy aims to ensure purity transparency, curb fraud, and enhance traceability in the growing affordable jewellery segment. This explores the rationale behind including 9K gold in mandatory hallmarking, analyses the market's response, and evaluates the potential effects on the future of gold purchasing in India. Drawing from recent policy developments, industry insights, and consumer trends, the study highlights the opportunities and challenges this regulation presents.

Gold holds profound cultural and economic significance in India, serving as a symbol of wealth, status, and investment. However, high gold prices, ranging from Rs. 54,000 to Rs. 73,000 for 10 grams of 18k to 24K gold is 2024, have made traditional high-purity gold jewellery less accessible for younger consumers, particularly Gen Z. The growing preference for affordable 9K gold, with a purity of 375 parts per thousand (ppt), has prompted the Indian government to include it in the mandatory hallmarking regime starting July 2025. This move aligns with the broader objectives of consumer protection, quality assurance, and curbing fraudulent practices in the gold market.

Background: Hallmarking in India

Under the BIS Act of 2016 standards govern Hallmarking which verifies precious metal purity in jewellery while protection of buyers through standardised fineness measurement. Since June 2021 gold jewellery requires mandatory hallmarking for six caratages (14K, 18K, 20K, 22K, 23K, and 24K) and more than 40 crore items features a unique Hallmark Unique Identification (HUID) number. On July 18, 2025, the government introduced 9K gold into the system to tackle the growing interest in affordable jewellery products and resolve problems of under-caratage and chain-snatching, which increased by 32.54% from 2021 to 2022. 

Testing for hallmarking takes place in BIS-recognised Assaying and Hallmarking Centres (AHCs) that follows IS 15820:2009 standards. A hallmarked product contains four elements, starting with the BIS mark and followed by carat and fineness purity information and then the AHC's identification mark and finally the jeweller's identification number. The infrastructure for expansion exists through 1,600 AHCs and 1.95 lakh registered jewellers as a December 2024, but compliance enforcement remains difficult, particularly for small-scale jewellers. 

Rational for including 9K Gold:

Several important factors serve as the basis for deciding to enforce mandatory hallmarking of 9K gold:

• Consumer Demand for Affordability: The rising cost of gold in 2024 (such as Rs.66,700 for 10 grams of 22K gold) has pushed the younger demographic toward choosing 9K gold as an affordable alternative since its gold content stands at 37.5%. Lightweight and daily-wear jewellery has become increasingly popular because of this consumer shift.
   
• Purity Transparency and Fraud Prevention: The untrustworthy nature of Indian gold jewellery has caused consumers to doubt the authenticity of their purchases because 10-15% of gold jewellery in India contains less than the specified purity level. The implementation of mandatory hallmarking protects consumers by verifying that 9K gold products adhere to the 375 ppt standard, thereby minimizing adulteration risks.
   
• Crime Reduction: Authorities launched the HUID number system for improving tracking capabilities after the rise of chain-snatching offences (9,278 cases in 2022) made it easier to identify stolen 9K gold jewellery.
   
• Market Expansion: The inclusion of 9K gold follows worldwide industry patterns because European markets frequently use 9K gold. Indian gold jewellery exports stands to grow from $8 billion by 2030.

Market Response:

The market's response to mandatory 9K hallmarking has been mixed, reflecting both optimism and concern:

  Positive Reactions:

• Consumer trust: Industry stakeholders, including the All India Gem and Jewellery Domestic. Council support the move because hallmarking assures consumers of purity. The practice of 9K hallmarking among goldsmiths serving daily-wear jewellery customers functions a trust-building instrumental toward their expanding segment.
   
• Industry Growth: The Gems and Jewellery Export Promotion Council (GJEPC) backs this policy because it predicts better raw material quality and higher export capacity. The new measure will produce employment opportunities in assaying operations while helping the domestic market reach international standards.
   
• Traceability Benefits: The HUID system's role in curbing chain-snatching has been praised as a "win-win" for consumer safety and purity assurance.

Concerns and Challenges:

• Cost Implications: Hallmarking costs which get transferred to consumers will reduce the affordability of 9K gold. Small jewellers express about certification fees because they might drive up retail price, which would push away customers who shop on a budget.
   
• Compliance Issues: Many small jewellers from tier-2 and tiers-3 cities find it difficult to follow hallmarking regulations because of their restricted access to AHCs and complicated certification systems. The World Gold Council stated that additional AHCs need to be established for proper national coverage.
   
• Implementation Gaps: The achievement of full implementation demands stringent BIS monitoring to stop non-compliance practice, predominantly from unorganized jewellers. The industry members highlights that making certification procedures easier would help small-scale artisans the most.

Impact on Future Gold Purchasing:

The Inclusion of 9K gold in mandatory hallmarking is poised to reshape gold purchasing in India, with both short-term and long-term implications:

Short-tern Effects:

• Increased Consumer Confidence : The implementation of Hallmarking will raise 9K gold demand since it provides purity verification, especially to price-conscious young consumers. The HUID system will further enhance trust by enabling traceability.
   
• Price Sensitivity: The quality assurance system of hallmarking might generate minor price increases for 9K gold jewellery, which could reduce demand among consumers who focus on prices. Nevertheless, the lower cost of 9K gold compared to higher caratages should reduce this price sensitivity.
   
• Market Adjustment: Jewellers must adjust to new rules, which will create short-term challenges for small businesses. The phased rollout by BIS and the existing AHC infrastructure work together to reduce the difficulties during the transition process.

 Long-Term Implications:

• Shift in consumer Preferences: As 9K gold gains legitimacy through hallmarking, it may become the preferred choice for daily-wear and fashion jewellery, especially among younger demographics. This could diversify India's gold market, traditionally dominated by higher-purity gold.
   
• Export Growth: Aligning with international standards, such as those in Europe where 9K gold is prevalent, could enhance India's competitiveness in global markets, supporting projections of a $134 billion gems and jewellery sector by 2030.

• Sustainability and Regulation: Unorganized jewelry businesses face mandatory hallmarking which will likely lead to industry consolidation and push small operators toward formal registration. The government must provide ongoing financial support through AHC network expansion and assaying cost subsidies as a necessary foundation.
   
• Impact on Investment Trends: The cost-effective nature of 9K gold makes it appealing to new investors if gold prices rise above $3,100/oz in 2025 and $8,900 in 2030. The investment risk of gold matches that of the S & P 500 which means investors should remain alert to market fluctuations.

Conclusion

India's new law to require hallmarking of 9K gold functions as a purposeful market strategy which addresses changing consumer needs and rising gold prices along with purity certification needs. The policy receives support for its trust-building features yet needs solutions for compliance expenses and implementation gaps to achieve maximum benefits. In the present time consumers will select 9K gold as a dependable budget-friendly alternative yet the policy stands to reshape India's gold market through market growth and formal industry development in the future. The inclusion of 9K gold in hallmarking standards enables India to maintain accessible and trustworthy gold markets despite rising prices and global economic uncertainty which leads to a more inclusive and robust gold purchasing framework.