Bombay Bullion Association President Prithviraj Kothari welcomed the move, saying the government now needed to quickly build more hallmarking centres to keep pace with demand.

Gold prices are high. Customers paying a hefty price need to be assured of quality. It is good move for the industry, Kothari said.

Hallmarking can boost investment demand in jewellery form. Currently purity concerns deter many consumers from buying jewellery.

Traders also hope quality assurance would also lead to higher jewellery exports.

The move also prompted a call for similar measures on silver jewellery.

Hallmarking silver products is not yet mandatory in India, where jewellery quality is sometimes an issue, mainly with small jewellers, and customers face problems during redemption.

Like gold, the government should make hallmarking compulsory in silver. It is a big market. Many people invest without purity guidance, Kothari said.