Topic-GI as a tool for Economic Empowerment of Rural Communities in India
Introduction
Ever wondered how you enjoy the story of a place, its culture, and its people just by buying a GI-tagged product that originates from that place? Whether it is a Banarasi saree you’re buying for a wedding or sipping a Darjeeling tea on a rainy evening. But we should also appreciate the communities from rural background whose skills they have passed on for generations. But in a global market full of imitations and counterfeits, how can we ensure that their work gets the deserved recognition and is awarded duly.
This blog will discuss how GI operates to empower the rural communities in India and recognize their work truly.
GI works not just as a legal tool but also acts as a bridge between tradition and livelihood and commerce. In India, GI has become more than an intellectual property right, it has transformed into a powerful driver of rural economic empowerment.
What exactly is Geographical Indication?
Geographical Indication is a sign or a tag indicating that a particular product originates from a particular place and the quality, reputation, and characteristics is attributed to that place.
Just think of it as a legal stamp of genuineness- much like champagne from France, or Parmesan cheese from Italy. We also take pride in having our own Indian treasures: Darjeeling tea (It was the first ever registered GI), Mysore silk, Kashmir saffron, Malihabadi Alphonso mango. But beyond the genuineness the question that stands before us is how do these GIs change lives in rural India.
Why GI matters to rural communities
For rural India, the livelihood mainly depends on agriculture and handicrafts, GI has became a game changer in various ways listed below:
- Preserving traditional knowledge and skills- Many of India’s magical treasures we see in our day to day life have centuries of history behind them, and their origin, and for that matter how they are made. GI protection just makes sure that whatever knowledge is being carried on for centuries from generation to generation it stays protected and are not lost to cheap duplications and mass production of the same. Artisans know that their work carries special creativity, skill and knowledge. GI just adds protection and continuity to their craft.
- Boosting local economies- A GI tag attracts premium pricing and high market value when sold in both domestic and international market. Surveys says that customers are ready to pay 10-15% more for GI tagged products which happens to be a significant financial boost for farmers, weavers and artisans.
- Boost in tourism- A boost in village tourism is also witnessed as people within the country and foreigners visit these places where GI-tagged products are found and manufactured. The purpose of the visit is either to buy the GI tagged product which will be authentic for consumption or use or the other purpose is that people are curios to know how these products are made and what factors contribute in that product being the identity of that particular place where it originates from.
- How GI help small industries and MSME’s- Most GI tagged products are produced by small farmers, artisans, weavers, and village level industries but the only issue is they don’t have that financial budget for marketing. GI gives them a collective identity and legal recognition that they deserve for their work. First of all GI helps MSME’s by protecting their products from imitation because when a product gets a GI tag, only producers from that particular region are allowed to use the name.
- Preventing exploitation by middlemen- GI empowers communities to collectively own their brand reducing exploitation and creating bargaining power to reap more profits because earlier middlemen used to take away all the profits and producers who did all the hard work got only fraction.[1]
Stories of GI empowerment in India
Let’s take a look at some of the most successful and recognized GI’s in India
Darjeeling Tea- Brewing global recognition
India’s first GI which was recorded in the year 2004 was Darjeeling tea, so it wasn’t just about protecting the product it was about protecting and to give recognition to thousands of small tea brewers which contributed in giving India and the world authentic Darjeeling tea. Counterfeit Darjeeling tea’s were sold all over the world before GI protection was granted which diluted the brand but now producers can differentiate themselves from the counterfeit products and also secure premium prices for their premium and authentic product. Darjeeling tea fetches ones of the highest prices per kilogram in the global market.
Banarasi Sarees- Reviving weaving communities
The story of Banarasi sarees and the struggle of local weavers is one of a resilience because till 2009, when GI tag was finally granted to Banarasi saree, before that, cheap power loom imitations dominated the market, frustrating many families abandoned weaving, and century old tradition was at the risk of major downfall but after GI recognition handwoven Banarasi saree gained back its rightful prestige. Women entrepreneurs and self help groups backed and helped the local weavers creating e-commerce to sell directly and currently Banarasi saree has became a symbol of not just elegant looks but also rural empowerment of Uttar Pradesh.
Kashmir Saffron- Protecting farmers against counterfeits
Kashmir’s saffron farmers faced a crisis when cheaper Iranian saffron dominated the market, and it was sold under the Kashmiri saffron label and because of this, which reduced their income and also led to the loss of Kashmiri saffron to lose its identity. After GI protection in 2020, Kashmiri saffron was globally recognized for its deep color, high aroma, and medicinal value. Farmers could proudly sell authentic saffron at higher prices, and faith in the product was restored.
The legal backbone of GI protection
The real reason GI was incorporated in out Intellectual property laws was because India was party to the TRIPS agreement which created a obligation for India to draft and enact a separate law for protection of GI’s which resulted in GI Act 1999, which provides a registration process for goods, legal protection under misuse and gave a right to the authorized and registered users to take action against the infringement.
Trademarks and patents are owned fully by an individual GI’s are collectively owned by producer groups, cooperatives or associations and that is the reason they suit the requirements of protection to the efforts of rural communities as they protect the collective identity of a region rather than monopoly rights of one person.
Challenges in realizing the full potential of GI’s
GI in itself has lots of potential and provides assurance to the rural communities that their work or traditional knowledge won’t get stolen or counterfeited, but still, there are some hurdles that are faced by the rural communities. One of them is the lack of awareness that many producers are unaware of how to register for a GI, enforce their rights if infringed, or benefit from a GI. Many people are not even aware of what GI is and how it can be helpful for them. Another reason is that even if a GI tag is secured, it won’t help alone, as there needs to be branding and marketing in order to reach a wider customer market, but due to a lack of financial budget and some other factors, rural communities cannot spread the word about their product in the wider market. The other major reason is counterfeiting, which is a bigger problem than anyone can think fake products are all over the market, whether it is the physical market or e-commerce market its very difficult to identify genuine products, and that is the reason rural communities suffer, and even consumers are deceived because of this. The other reason is struggle which is faced by countries in exporting their GI treasures abroad. The countries in the European Union have a major export market of their own GI products.
The way forward- Unlocking GI,s True power
To transform GI’s into engines of rural empowerment, India needs a multi-layered approach:
First of all, things which is grassroot education about GI and its effect, and how to register and when, and how this infringes where the rights can be enforced. A simple legal literacy can solve this problem of lack of awareness and help the farmers and artisans, and encourage them to produce more treasures that can be capable of GI registration.
Second is that GI-tagged products can be marketed with the same energy as luxury brands are marketed. Leveraging e-commerce platforms like Flipkart Samarth and Amazon Karigar, and other government initiatives, these can help local communities to reach on a global level and tap global markets.
Third, strict action against counterfeiters should be taken, and there should be a level of awareness given to the consumers and producers on how to differentiate between the genuine products and the duplicates. Customs and export authorities should also be vigilant regarding these. Strict action on e-commerce platforms is necessary since the global audience has access to it.
Conclusion
A Geographical indication tag is more than any label it is a promise of genuineness and celebration of culture and also empowers the rural communities. GI’s have given communities not just a livelihood but also dignity and recognition. The potential GI has is huge not just in matters of offering protection but transforming the rural economy to another level. The condition remains India has to invest heavily in GI as an intellectual property. The future lies in Global from Local. Because behind every GI tag there lies a story and behind every story lies a community waiting to be empowered.
Author:–Pranav, in case of any queries please contact/write back to us at support@ipandlegalfilings.com or IP & Legal Filing.
Important Case laws
- Tea Board of India v. ITC Ltd. (Darjeeling lounge case)
- Scotch Whisky Association v. Golden Bottling Ltd.
- Scotch Whisky Association v. Pravara Sahakar Karkhana Ltd.
- Karnataka Silk industries Corporation Ltd. V. Goldwin Apparels
- Napa Valley Vintners Association v. Indage Vintners
[1] Name of author-Pranav, Stream-BBA.LL.B Year of study-4th Year, Email-2282073@kls.ac.in



