Silver Demand Rises as Centre Plans More BIS Testing Labs

Silver Demand Rises as Centre Plans More BIS Testing Labs

Silver is attracting greater attention from Indian consumers as the sharp rise in gold prices makes the yellow metal increasingly expensive for many buyers. With more people turning towards silver jewellery, concerns about purity and product quality have also become more important.

Against this backdrop, the Centre is planning to expand testing infrastructure for silver jewellery and strengthen the hallmarking system. The move is aimed at making purity verification more accessible and giving consumers greater confidence when purchasing silver products.

Gold's Price Rise Pushes Attention Towards Silver

Gold has traditionally remained one of India's most popular precious metals for jewellery and investment. However, the recent increase in gold prices has encouraged some consumers to consider silver as a more affordable alternative.

The shift has contributed to stronger demand for silver jewellery. As purchases increase, the need for reliable mechanisms to verify purity becomes more significant.

The government's latest move focuses on addressing this requirement by expanding testing facilities and strengthening the existing hallmarking framework.

More Testing Facilities Planned

The Centre plans to increase the number of laboratories capable of testing silver jewellery over the coming two years. These facilities are expected to support purity checks and make testing infrastructure more widely available across the country.

The expansion comes as the use of hallmarking for silver jewellery gains momentum. According to the source article, around 230 BIS-recognised centres currently test silver jewellery across India, while the broader BIS-recognised laboratory network has also expanded substantially over the years.

A larger testing network could help the hallmarking system cope with rising demand while making it easier for jewellery businesses to get products tested.

Hallmarking Gives Buyers a Purity Check

Hallmarking is intended to provide consumers with greater assurance about the purity of precious-metal jewellery. Silver jewellery has been covered by hallmarking in India since 2005.

Hallmarked silver jewellery carries a unique identification number. Consumers can use this identification to obtain information related to the purity of the product, providing an additional layer of confidence when making a purchase.

As awareness of hallmarking grows, consumers are increasingly looking for clearer assurance about what they are buying. This makes testing and certification particularly important at a time when silver demand is expanding.

Silver Hallmarking Sees Strong Growth

The number of silver jewellery pieces receiving hallmark certification has increased sharply. During the 2024-25 financial year, approximately 32 lakh silver jewellery articles were hallmarked, according to the information reported by TV9 Telugu.

That figure rose to around 59 lakh articles in 2025-26. The increase indicates growing adoption of hallmarking as both jewellery businesses and consumers place greater emphasis on purity verification.

The rising numbers also explain why additional testing capacity is becoming necessary. More hallmarking activity naturally requires sufficient laboratories and testing infrastructure to process jewellery efficiently.

Why the Expansion Matters for Consumers

For consumers, a stronger hallmarking ecosystem could make silver jewellery purchases more transparent. Buyers often want reassurance that the product they are paying for meets the stated purity standards.

Greater access to recognised testing facilities could also support jewellers by improving the availability of certification services. This becomes increasingly relevant as silver moves into greater focus among consumers looking for alternatives to high-priced gold.

The government's plan therefore addresses both sides of the market: consumers seeking confidence and the jewellery industry needing adequate testing capacity.

India's Testing Infrastructure Has Expanded

The broader BIS laboratory network has grown considerably. The number of BIS-recognised laboratories stood at about 147 in 2014, while the current figure is around 440, according to the source report. In addition, about 350 government laboratories are part of the BIS panel.

The planned expansion of silver jewellery testing facilities would add further capacity to this ecosystem and support the growing demand for purity verification.

What the Move Means for the Silver Market

The government's focus on testing and hallmarking comes at a time when silver is gaining greater visibility among Indian jewellery buyers. If demand continues to grow, reliable quality certification could become an increasingly important part of the market.

For consumers, the key takeaway is that hallmarking can provide useful information about the purity of silver jewellery. For jewellers, expanded testing infrastructure could make the certification process more accessible.

With gold prices remaining a major consideration for jewellery buyers, silver is likely to remain an important alternative in the precious-metals market. The planned expansion of BIS testing facilities could therefore play a significant role in supporting a more transparent and consumer-focused silver jewellery market.