Phase by Phase: How Mandatory Gold Hallmarking Was Rolled Out Across India

India's transition from voluntary to mandatory gold hallmarking was not a single event but a carefully staged rollout across five phases. Each phase expanded geographic coverage and incorporated lessons from its predecessors.

The Announcement and COVID Delays

In November 2019, the government formally declared that gold jewellery hallmarking would become mandatory from 15 January 2021. The Quality Control Order was issued on 15 January 2020, giving the industry one year to prepare.

Then COVID-19 intervened. The pandemic disrupted jewellery manufacturing, testing centre operations, and BIS registration processes. The deadline was extended twice — first to 15 June 2021, then to 23 June 2021.

Phase 1: 23 June 2021 — 256 Districts

The first phase was the most ambitious leap: mandatory hallmarking went live across 256 districts in a single day. Gold jewellery in three karat grades — 14K, 18K, and 22K — had to be hallmarked before sale by registered jewellers.

Key exemptions provided breathing room: jewellery under 2 grams, Kundan, Polki, and Jadau items, export-destined articles, and jewellers with annual turnover below Rs 40 lakh.

At launch, approximately 945 AHCs and 34,647 registered jewellers formed the compliance infrastructure.

Phase 2: 4 April 2022 — 288 Districts

Phase 2 added 32 districts, extending coverage primarily to semi-urban areas. More significantly, 20K, 23K, and 24K gold were added to the mandatory regime, covering investment-grade gold alongside jewellery.

By this point, registered jewellers had already surged past 1,30,000 — a nearly four-fold increase from pre-mandatory levels.

Phase 3: 8 September 2023 — 343 Districts

The third phase added 55 districts, pushing mandatory hallmarking into more rural and tier-3 areas. This phase also coincided with an important transition: the sale of gold jewellery with old four-mark hallmarks (without HUID) was prohibited from 1 April 2023. All gold jewellery in the market now had to carry the three-mark HUID hallmark.

Phase 4: 5 November 2024 — 361 Districts

Phase 4 added 18 districts, reaching 361. By this date, the scale of the system was remarkable: over 44.28 crore (442.8 million) gold articles had been hallmarked with HUID since July 2021. More than 4 lakh items were being hallmarked every working day. Registered jewellers exceeded 1,94,000, and 1,622 AHCs were operational.

Phase 5: Late 2025 — 373 Districts

The fifth phase added 12 more districts, bringing the total to 373. Mandatory hallmarking now covered the vast majority of India's gold retail market.

The Numbers Tell the Story

Lessons from the Rollout

The phased approach allowed the industry to adapt gradually, the AHC network to expand organically, and BIS to refine operational processes based on real-world feedback. Each phase built on the capacity created by the previous one, creating a hallmarking infrastructure that now processes approximately one crore pieces per month.