Quality Control Is A Must

Developing Indian Hallmarking – A Roadmap for Future Growth A national hallmarking system is a crucial component of a successful gold monetisation scheme in India according to the World Gold Council, says their recently released report. Indian Jeweller

Post By : IJ News Service On 06 October 2015 5:09 PM

The World Gold Council (WGC) in its recently released report ‘Developing Indian Hallmarking – A roadmap for future growth’ called for urgent steps to improve quality standards in India.
The new report finds that improvements to the hallmarking system in the country are important to a successful gold monetisation scheme. The report provides an in-depth assessment of the current Indian hallmarking system and a summary of international best practice methods. It recommends a number of steps to enhance the current system which, if implemented, would rebuild trust in the purity of Indian gold, giving consumers greater confidence in the caratage of their gold purchases.
Further, the report also finds that an increased confidence in Indian gold, which a rigorous and consistent nationwide scheme would deliver, has the potential to increase the country’s gold exports from an existing US$8 billion to US$40 billion by 2020. .
Since the introduction of a hallmarking standard in 2000 by the Bureau of Indian Standards (BIS) India has made good progress in developing its hallmarking system. However, only 30 per cent of Indian gold jewellery is currently hallmarked. There are widespread differences in purity and an average under-caratage of anywhere from 10 per cent to 15 per cent. The report highlights that a lack of BIS-recognised hallmarking centres across the country is also likely to have an impact on the successful implementation of the Indian Government’s gold monetisation scheme which is dependent upon the collateralisation value of gold.

Hallmarking in India today
The Bureau of Indian Standards (BIS) India introduced hallmarking standards and policies, modelled around the UK system in the year 2000. More than 300 hallmarking centres have been opened, over 13,000 jewellers are accredited and the BIS has established a supervisory structure for both hallmarkers and retailers. As a result, under-caratage has reduced from between 20 per cent and 40 per cent to between 10 per cent and 15 per cent. However, many challenges remain. Hallmarking is not mandatory and consumer awareness is low. Moreover, hallmarked and non-hallmarked jewellery are both sold in the same outlet; and less than one-third of total jewellery is hallmarked. Operationally, many centres suffer from low profitability, poor equipment and slack processes. And from a supervisory perspective, the BIS is not adequately staffed to fulfill its role effectively. Key findings
• Hallmarking infrastructure has developed rapidly since the BIS scheme was launched in 2000
• However, a significant percentage of jewellery is still not hallmarked. And even hallmarked items vary widely in purity
• The BIS has established clear and comprehensive policies and standards. But it lacks the resources and the manpower to enforce them
• Hallmarking is voluntary and consumer awareness is limited so jewellers are neither obliged nor incentivised to become certified
• The BIS has established thorough and robust testing and sampling processes
• However, the rigour with which tests are carried out and the extent to which processes are applied varies considerably from centre to centre
• Hallmarking centres need to operate at a minimum of 50 per cent capacity just to break even at the BIS stipulated price of 25 rupees
• Many cannot achieve this target so they resort to price-cutting and malpractice
• The BIS has developed extensive and detailed governance policies
• But it would need substantial extra resource to implement and enforce these policies effectively.

Future steps: delivering success
The Indian gold jewellery market is extremely complex. There are more than 400,000 jewellers, most of which are small and independently operated. The manufacturing base is also highly fragmented and many operators are small-scale. Key findings
The report recommends that India’s current hallmarking model, built around independent hallmarking and assay centres, should be retained. In addition it recommends six key actions which should be taken to improve the efficiency and effectiveness of the current system:
1. Strengthen governance around hallmarking processes
2. Drive customer awareness of hallmarking
3. Incentivise and facilitate targeted expansion of hallmarking centres
4. Use BIS data to develop a ratings system for jewelers
5. Pilot BIS’ Unique ID scheme or other technology solutions to support hallmarking
6. Pursue membership of the International Hallmarking Convention or develop an Asian alternative.
In the long term, the report recommends hallmarking should be made mandatory and recommends a transition to a manufacture-driven system which would drive consolidation within the unorganised jewellery manufacturing industry.
Furthermore, the report is clear the development of a more stringent system would deliver huge benefits to the Indian gold market including: increased trust amongst overseas buyers and financial markets, resulting in a larger export market, a stronger domestic market and job creation across the spectrum.

Quote
Commenting on the launch of the hallmarking report Somasundaram PR, Managing Director, India, World Gold Council said: “A credible hallmarking system with a widespread presence of assaying and hallmarking centres is essential for both the gold jewellery industry and for the implementation of a successful monetisation scheme. Hallmarking is to jewellery what ’know your customer’ norms are for financial services it is essential to the success of the jewellery industry in a world where consumers seek transparency, quality and consistency and is critical to building consumer trust and confidence . The trust and confidence which comes with a credible nationwide hallmarking system will underpin the growth of gold jewellery exports, boosting the Indian industry’s credibility in the global jewellery sector. It is a fundamental requirement if the industry wants to have a bigger role in the ‘Make in India’ ambition and eventually position India as “jeweller to the world’. In addition, the quality of gold would be a critical element for the success of the gold monetisation scheme”.

The World Gold Council (WGC) in its recently released report ‘Developing Indian Hallmarking – A roadmap for future growth’ called for urgent steps to improve quality standards in India.
The new report finds that improvements to the hallmarking system in the country are important to a successful gold monetisation scheme. The report provides an in-depth assessment of the current Indian hallmarking system and a summary of international best practice methods. It recommends a number of steps to enhance the current system which, if implemented, would rebuild trust in the purity of Indian gold, giving consumers greater confidence in the caratage of their gold purchases.
Further, the report also finds that an increased confidence in Indian gold, which a rigorous and consistent nationwide scheme would deliver, has the potential to increase the country’s gold exports from an existing US$8 billion to US$40 billion by 2020. .
Since the introduction of a hallmarking standard in 2000 by the Bureau of Indian Standards (BIS) India has made good progress in developing its hallmarking system. However, only 30 per cent of Indian gold jewellery is currently hallmarked. There are widespread differences in purity and an average under-caratage of anywhere from 10 per cent to 15 per cent. The report highlights that a lack of BIS-recognised hallmarking centres across the country is also likely to have an impact on the successful implementation of the Indian Government’s gold monetisation scheme which is dependent upon the collateralisation value of gold.

Hallmarking in India today
The Bureau of Indian Standards (BIS) India introduced hallmarking standards and policies, modelled around the UK system in the year 2000. More than 300 hallmarking centres have been opened, over 13,000 jewellers are accredited and the BIS has established a supervisory structure for both hallmarkers and retailers. As a result, under-caratage has reduced from between 20 per cent and 40 per cent to between 10 per cent and 15 per cent. However, many challenges remain. Hallmarking is not mandatory and consumer awareness is low. Moreover, hallmarked and non-hallmarked jewellery are both sold in the same outlet; and less than one-third of total jewellery is hallmarked. Operationally, many centres suffer from low profitability, poor equipment and slack processes. And from a supervisory perspective, the BIS is not adequately staffed to fulfill its role effectively. Key findings
• Hallmarking infrastructure has developed rapidly since the BIS scheme was launched in 2000
• However, a significant percentage of jewellery is still not hallmarked. And even hallmarked items vary widely in purity
• The BIS has established clear and comprehensive policies and standards. But it lacks the resources and the manpower to enforce them
• Hallmarking is voluntary and consumer awareness is limited so jewellers are neither obliged nor incentivised to become certified
• The BIS has established thorough and robust testing and sampling processes
• However, the rigour with which tests are carried out and the extent to which processes are applied varies considerably from centre to centre
• Hallmarking centres need to operate at a minimum of 50 per cent capacity just to break even at the BIS stipulated price of 25 rupees
• Many cannot achieve this target so they resort to price-cutting and malpractice
• The BIS has developed extensive and detailed governance policies
• But it would need substantial extra resource to implement and enforce these policies effectively.

Future steps: delivering success
The Indian gold jewellery market is extremely complex. There are more than 400,000 jewellers, most of which are small and independently operated. The manufacturing base is also highly fragmented and many operators are small-scale. Key findings
The report recommends that India’s current hallmarking model, built around independent hallmarking and assay centres, should be retained. In addition it recommends six key actions which should be taken to improve the efficiency and effectiveness of the current system:
1. Strengthen governance around hallmarking processes
2. Drive customer awareness of hallmarking
3. Incentivise and facilitate targeted expansion of hallmarking centres
4. Use BIS data to develop a ratings system for jewelers
5. Pilot BIS’ Unique ID scheme or other technology solutions to support hallmarking
6. Pursue membership of the International Hallmarking Convention or develop an Asian alternative.
In the long term, the report recommends hallmarking should be made mandatory and recommends a transition to a manufacture-driven system which would drive consolidation within the unorganised jewellery manufacturing industry.
Furthermore, the report is clear the development of a more stringent system would deliver huge benefits to the Indian gold market including: increased trust amongst overseas buyers and financial markets, resulting in a larger export market, a stronger domestic market and job creation across the spectrum.

Quote
Commenting on the launch of the hallmarking report Somasundaram PR, Managing Director, India, World Gold Council said: “A credible hallmarking system with a widespread presence of assaying and hallmarking centres is essential for both the gold jewellery industry and for the implementation of a successful monetisation scheme. Hallmarking is to jewellery what ’know your customer’ norms are for financial services it is essential to the success of the jewellery industry in a world where consumers seek transparency, quality and consistency and is critical to building consumer trust and confidence . The trust and confidence which comes with a credible nationwide hallmarking system will underpin the growth of gold jewellery exports, boosting the Indian industry’s credibility in the global jewellery sector. It is a fundamental requirement if the industry wants to have a bigger role in the ‘Make in India’ ambition and eventually position India as “jeweller to the world’. In addition, the quality of gold would be a critical element for the success of the gold monetisation scheme”.

The World Gold Council (WGC) in its recently released report ‘Developing Indian Hallmarking – A roadmap for future growth’ called for urgent steps to improve quality standards in India.
The new report finds that improvements to the hallmarking system in the country are important to a successful gold monetisation scheme. The report provides an in-depth assessment of the current Indian hallmarking system and a summary of international best practice methods. It recommends a number of steps to enhance the current system which, if implemented, would rebuild trust in the purity of Indian gold, giving consumers greater confidence in the caratage of their gold purchases.
Further, the report also finds that an increased confidence in Indian gold, which a rigorous and consistent nationwide scheme would deliver, has the potential to increase the country’s gold exports from an existing US$8 billion to US$40 billion by 2020. .
Since the introduction of a hallmarking standard in 2000 by the Bureau of Indian Standards (BIS) India has made good progress in developing its hallmarking system. However, only 30 per cent of Indian gold jewellery is currently hallmarked. There are widespread differences in purity and an average under-caratage of anywhere from 10 per cent to 15 per cent. The report highlights that a lack of BIS-recognised hallmarking centres across the country is also likely to have an impact on the successful implementation of the Indian Government’s gold monetisation scheme which is dependent upon the collateralisation value of gold.

Hallmarking in India today
The Bureau of Indian Standards (BIS) India introduced hallmarking standards and policies, modelled around the UK system in the year 2000. More than 300 hallmarking centres have been opened, over 13,000 jewellers are accredited and the BIS has established a supervisory structure for both hallmarkers and retailers. As a result, under-caratage has reduced from between 20 per cent and 40 per cent to between 10 per cent and 15 per cent. However, many challenges remain. Hallmarking is not mandatory and consumer awareness is low. Moreover, hallmarked and non-hallmarked jewellery are both sold in the same outlet; and less than one-third of total jewellery is hallmarked. Operationally, many centres suffer from low profitability, poor equipment and slack processes. And from a supervisory perspective, the BIS is not adequately staffed to fulfill its role effectively. Key findings
• Hallmarking infrastructure has developed rapidly since the BIS scheme was launched in 2000
• However, a significant percentage of jewellery is still not hallmarked. And even hallmarked items vary widely in purity
• The BIS has established clear and comprehensive policies and standards. But it lacks the resources and the manpower to enforce them
• Hallmarking is voluntary and consumer awareness is limited so jewellers are neither obliged nor incentivised to become certified
• The BIS has established thorough and robust testing and sampling processes
• However, the rigour with which tests are carried out and the extent to which processes are applied varies considerably from centre to centre
• Hallmarking centres need to operate at a minimum of 50 per cent capacity just to break even at the BIS stipulated price of 25 rupees
• Many cannot achieve this target so they resort to price-cutting and malpractice
• The BIS has developed extensive and detailed governance policies
• But it would need substantial extra resource to implement and enforce these policies effectively.

Future steps: delivering success
The Indian gold jewellery market is extremely complex. There are more than 400,000 jewellers, most of which are small and independently operated. The manufacturing base is also highly fragmented and many operators are small-scale. Key findings
The report recommends that India’s current hallmarking model, built around independent hallmarking and assay centres, should be retained. In addition it recommends six key actions which should be taken to improve the efficiency and effectiveness of the current system:
1. Strengthen governance around hallmarking processes
2. Drive customer awareness of hallmarking
3. Incentivise and facilitate targeted expansion of hallmarking centres
4. Use BIS data to develop a ratings system for jewelers
5. Pilot BIS’ Unique ID scheme or other technology solutions to support hallmarking
6. Pursue membership of the International Hallmarking Convention or develop an Asian alternative.
In the long term, the report recommends hallmarking should be made mandatory and recommends a transition to a manufacture-driven system which would drive consolidation within the unorganised jewellery manufacturing industry.
Furthermore, the report is clear the development of a more stringent system would deliver huge benefits to the Indian gold market including: increased trust amongst overseas buyers and financial markets, resulting in a larger export market, a stronger domestic market and job creation across the spectrum.

Quote
Commenting on the launch of the hallmarking report Somasundaram PR, Managing Director, India, World Gold Council said: “A credible hallmarking system with a widespread presence of assaying and hallmarking centres is essential for both the gold jewellery industry and for the implementation of a successful monetisation scheme. Hallmarking is to jewellery what ’know your customer’ norms are for financial services it is essential to the success of the jewellery industry in a world where consumers seek transparency, quality and consistency and is critical to building consumer trust and confidence . The trust and confidence which comes with a credible nationwide hallmarking system will underpin the growth of gold jewellery exports, boosting the Indian industry’s credibility in the global jewellery sector. It is a fundamental requirement if the industry wants to have a bigger role in the ‘Make in India’ ambition and eventually position India as “jeweller to the world’. In addition, the quality of gold would be a critical element for the success of the gold monetisation scheme”.

Be the first to comment

Leave a comment

Advertisement

Related News

No news available.
Advertisement
INDIAN JEWELLER

Email Alerts

WhatsApp Alerts