100 Hallmarking Centres to Open Up in India

India: Soon, the consumers in India need not to worry about the purity of gold jewelry as nearly 100 hallmarking centres have submitted their applications to BIS (Bureau of Indian Standards). If approved, there will be total 475 hallmarking centres in the country and would consequently increase India’s hallmarked jewelry sales capacity to 900 tonnes. During FY 2015-16, the country certified 37 million jewelry pieces at the 375 BIS-recognised hallmarking centres in the country. According to BIS Act, 2016, the jewelry can be certified through simpler self-certification mechanism, mandatory hallmarking, product recall and product liability for consumer protection. According to the new Act, every piece of jewelry sold in the country shall carry the 5 BIS hallmark logos. BIS is planning to increase the applications for the hallmarking centres by December 31, 2016. An investment of USD0.15 million is planned for each BIS hallmarking center opened in various cities of the country. Moreover, in order to ensure better traceability of jewellers in case of complaints, each jewelry piece will have a unique alpha-numeric identity, which corresponds to the BIS licence.

According to TechSci Research, the proposed step taken by BIS is expected to significantly increase the share of organised jewelry being sold in the country as the step would increase the country’s capacity to process the certified hallmarked jewelry, consequently increasing the country’s market share in the global gems and jewelry market, which is comparatively more organised than the Indian gems and jewelry market.

According to a recent report published by TechSci Research, “Global Gems & Jewelry Market Forecast & Opportunities, 2020”, the global market for gems & jewelry is projected to grow at a CAGR of around 6% during 2015-20. In 2014, the gold jewelry segment dominated the global gems & jewelry market, followed by diamond and platinum jewelry. Demand for precious gem stones has also been growing due to changing preferences of younger generation from gold to colored gemstone, platinum and palladium jewelry. Growing brand consciousness is also boosting sales of branded jewelry in developed as well as developing economies, and this trend is expected to gain strengthen over the next five years. Few of the major branded gems & jewelry companies with operations spread across the globe include Tiffany & Co., Gitanjali, Signet, LVMH, Chow Tai Fook, and Richemont.