India, with its rich cultural diversity and centuries-old traditions, is a treasure trove of unique regional products, ranging from Banarasi sarees to Darjeeling tea and beyond. To protect and promote this traditional knowledge and craftsmanship, India has embraced the system of Geographical Indications (GI) under the Geographical Indications of Goods (Registration and Protection) Act, 1999. As of 2025, over 450 products have been granted GI status in India. But a crucial question remains: are GI tags truly empowering rural artisans and farmers, or are they just symbolic labels with limited practical value?
This article delves into the real-world impact of GI tags on rural India, challenges in enforcement and misuse, their strategic value in branding India globally, and contentious cross-border disputes—most notably with Pakistan over Basmati rice.
This blog is a part of our The Ultimate Guide to Intellectual Property Law blogpost.
Understanding GI Tags: Legal and Economic Significance
A GI tag is a form of intellectual property right that identifies a good as originating from a particular place, where a given quality, reputation, or other characteristic is essentially attributable to its geographic origin. Once granted, the GI tag confers exclusive rights to the producers of that region to use the name and prevents misuse by outsiders.
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- Darjeeling Tea: The first GI tag in India, known globally for its unique aroma and flavor.
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- Madhubani Paintings: Preserving traditional art forms from Bihar.
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- Kandangi Sarees, Kodaikanal Garlic, and Aranmula Kannadi: Examples of region-specific traditional products.
Real-World Impact: Empowering or Excluding?
Positive Outcomes
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- Market Differentiation and Premium Pricing: GI tags can create a brand identity for rural products, leading to better market positioning and higher prices. For instance, producers of Darjeeling tea and Pochampally Ikat have reported increased global recognition.
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- Cultural Preservation: GI registration often revives dying arts by encouraging younger generations to continue traditional crafts.
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- Community Rights: GIs protect collective knowledge, ensuring that benefits flow to the community rather than to individual or corporate appropriators.
Persistent Challenges
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- Lack of Awareness: Many rural producers are unaware of how to leverage the GI status for commercial gains. A 2023 study by the National Law University Delhi found that in 60% of registered GI regions, local artisans had little understanding of the IP rights they held.
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- Middlemen Domination: Traders and exporters often reap the financial rewards, leaving actual producers with a small share of profits.
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- Limited Access to Global Markets: GI holders struggle with branding, marketing, and exporting due to limited digital and logistical infrastructure.
Enforcement and Misuse: A Weak Link in the Chain
GI tags are vulnerable to misuse, both domestically and internationally.
Key Issues:
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- Fake Products: Imitation goods flood markets, especially urban and online platforms, diluting the value of authentic GI-tagged products.
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- Lack of Legal Action: Enforcement remains weak due to insufficient monitoring by authorities and low capacity at the grassroots level to pursue legal remedies.
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- Cross-Jurisdictional Enforcement: Unlike trademarks, GIs require separate recognition in foreign countries, making international protection costly and complex.
Case in Point:
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- Darjeeling Tea Misuse: Several foreign firms marketed tea blends as “Darjeeling” despite not sourcing the tea from India. This led to global campaigns and certification marks, but enforcement remains uneven.
GI Tags and India’s Soft Power Diplomacy
India’s GI products hold immense potential for soft power projection on the global stage. Cultural exports like handloom textiles, artisanal foods, and regional art forms enhance India’s identity as a diverse, tradition-rich country.
Strategies for Enhancement:
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- International GI Registrations: India has successfully registered Basmati rice as a GI in the EU and is pursuing similar protection in other jurisdictions.
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- Promotion through Diplomacy and Tourism: GI products can be showcased in embassies, international fairs, and tourism campaigns.
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- Linking GIs with Sustainability and Fair Trade: This adds value for global consumers who prioritize ethical consumption.
Cross-Border GI Disputes: The Basmati Rice Battle
India’s battle with Pakistan over the GI status of Basmati rice is perhaps the most prominent example of a cross-border GI conflict.
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- 2006: India granted GI status to Basmati rice under the GI Act.
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- 2019: India applied for exclusive GI recognition of Basmati in the EU.
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- 2020–2023: Pakistan objected, claiming joint heritage rights over Basmati.
Arguments:
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- India’s Position: Claims consistent production, traditional reputation, and export dominance.
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- Pakistan’s Position: Argues that Basmati rice is grown across Punjab in both countries, hence a joint GI should be considered.
As of 2025, the EU has yet to issue a final ruling. A joint GI status, while equitable, poses challenges in branding and quality control.
Other Cross-Border Issues:
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- Disputes with Sri Lanka over Kandyan dances
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- Misuse of Indian GIs by international markets
Policy Recommendations
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- Capacity Building: Educate producers about their rights and equip them with marketing tools.
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- Digital GI Marketplace: Create a verified e-commerce portal for GI products with traceability mechanisms.
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- Stronger Legal Framework: Amend GI rules to include provisions for better enforcement, penalties, and government-led monitoring.
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- Export Facilitation: Provide logistical and financial support for GI product exporters.
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- Global Treaty Participation: Push for a multilateral treaty on GI protection through the WTO or WIPO.
GI Tags in India: Bridging Promise and Practice
While the GI tag system in India is a commendable step toward protecting traditional knowledge and empowering rural communities, its real impact remains uneven. Without strong enforcement, awareness, and infrastructure, GI tags risk becoming mere labels rather than levers of economic empowerment. By strategically integrating GIs into national branding, export policies, and rural development plans, India can unlock the true potential of its geographical heritage for both local upliftment and global recognition.
