The Role of Hallmarking Centres in India's Gold Supply Chain

In India's gold ecosystem — from refiner to manufacturer to jeweller to consumer — the Assaying & Hallmarking Centre (AHC) occupies a critical position as the independent, third-party quality gatekeeper.

Position in the Supply Chain

Gold moves through a well-defined chain:

1. Refiners produce gold bars from imported or recycled raw material
2. Manufacturers fabricate jewellery from refined gold
3. Hallmarking Centres test and certify the purity of finished articles
4. Jewellers sell hallmarked articles to consumers

The hallmarking centre sits between production and sale, ensuring that what reaches the consumer has been independently verified. This separation of testing from selling is fundamental to the system's credibility.

Scale of Operations

Over 1,060 AHCs are now operational across all 36 states and union territories, supporting nearly 1,94,000 registered jewellers. India consumed 802.8 tonnes of gold in 2024 and 710.9 tonnes in 2025 — the hallmarking infrastructure must process a substantial portion of this volume.

The Testing Process

At a typical hallmarking centre, testing follows a two-stage protocol:

1. XRF Screening — X-Ray Fluorescence spectrometry provides rapid, non-destructive analysis to verify composition and homogeneity
2. Fire Assay — conducted per IS 1418:2015 when required for definitive purity certification, particularly for disputed cases or high-value articles

Articles that pass testing are stamped with the BIS hallmark and assigned a unique HUID through the BIS online portal.

Quality and Accountability

All AHCs are licensed and monitored by BIS. They must maintain:

• Calibrated instruments traceable to national standards
• Qualified assayers with prescribed training
• Adherence to BIS operational guidelines
• Regular proficiency testing and audits

This standardised framework ensures that a hallmark applied in Mumbai carries the same credibility as one applied in Chennai or Kolkata.

Consumer Testing

AHCs also accept individual consumer samples for purity testing on a chargeable basis. This means any consumer can independently verify the purity of their gold — an important transparency measure.

Strategic Importance

A credible hallmarking infrastructure is considered essential for India's ambition to become a leading global gold market centre. The World Gold Council has identified robust assaying capabilities as a prerequisite for gold monetisation schemes and export competitiveness.