The government is considering a proposal to make hallmarking of gold bullion mandatory and is also framing regulations for lab-grown diamonds as part of its efforts to protect consumers’ interest, Consumer Affairs Secretary Nidhi Khare said on Friday.

Addressing a CII Gems and Jewellery conference here, she emphasized on the need to protect consumers’ interest by ensuring that people get quality and accurate products.

“The Gems and jewellery sector is a vital pillar of our economy, contributing very significantly to both exports and employment,” Khare said.

The Secretary highlighted the successful implementation of mandatory hallmarking of gold jewellery and gold artefacts, which started from June 23, 2021.

More than 40 crore gold jewellery items have been hallmarked with a unique HUID, ensuring greater trust and transparency for the consumers in the market, she said.

“There is a proposal for making hallmarking of gold bullion mandatory and this is under consideration in the department,” Khare said.

“The whole idea is that while jewellers are actually importing gold, many times, they themselves are not sure about the quality of gold that they are receiving or they are buying. So I think the entire value chain needs to be identified for its correctness, for its accuracy, for honesty and truthfulness,” the secretary observed.

Khare noted that India’s gems and jewellery sector market size is projected to reach USD 134 billion by 2030, from around USD 44 billion in 2023.

That apart, the secretary said, India is also the second largest gold exporter globally, contributing to about 3.5 per cent to India’s total exports.

“The government of India recognizes the potential of this sector and has also designated it as a priority area for export promotion,” Khare said.

Elaborating on mandatory hallmarking of gold jewellery, the secretary said the number of registered jewellers has increased to around 1.95 lakh, while the number of Assaying and Hallmarking Centers (AHCs) has grown to over 1,600 since the launch.

Khare also said the department of consumer affairs is framing regulations for lab-grown diamonds to protect the interest of consumers buying natural diamonds that are much costlier.

She said the demand for lab-grown diamonds is rising.

Khare exhorted the industry to make efforts to make Indian jewellery popular in global markets.

The Gems and Jewellery Export Promotion Council (GJEPC) Executive Director Sabyasachi Ray said there is a need for mandatory hallmarking of gold bullion to ensure the quality of raw material.