IPR Newsletter – Economic Impact of Geographical Indication in India : March 2025

WHAT CONSTITUTES AS A GI :

A Geographical Indication (GI) stands for a mark on products from a particular place with special qualities or a good name because of where they come from. For a sign to work as a GI, it needs to show that a product comes from a specific area.

Also, considering the product it includes all the good points, features, or reputation that is associated with it and from where it’s made or manufactured. As the qualities rely on where the product is made, we can see a strong connection between the item and its birthplace that is the origin of the place.

People often use geographical indications for:

Handicrafts – You might see this with Madhubani Paintings or Mysore Silk

Food items – Take in mind things which are Tirupati Laddu or Rasgulla’s

Wine & Drinks – Some examples are Darjeeling tea, Champagne and Cognac from France; Scotch Whisky from the UK, and Tequila from Mexico

Agricultural Products – Like Basmati Rice

The phrase “Geographical Indications” covers several ideas found in global agreements and local or regional laws. These include: appellation of origin (AO), protected designation of origin (PDO) and protected geographical indication (PGI). If we have to an example then,

The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications provide a definition for “Geographical Indication.”

The Lisbon Agreement for the Protection of Appellations of Origin and their International Registration, along with the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications, offer a definition for “Appellation of origin.”

The European Union uses the terms “Protected Designation of Origin (PDO)” and “Protected Geographical Indication (PGI)” instead of Geographical indication (GI) directly.

A geographical indication right gives its holders the power to stop others from using the indication if their product doesn’t meet the required standards. Let’s look at an example. Think about the places where the Darjeeling region has geographical indication protection. In these areas, Darjeeling tea growers can ban the use of “Darjeeling” for tea that doesn’t come from their gardens. They can also do this if the tea isn’t made following the rules laid out for the geographical indication.

But a protected geographical indication stops anyone except the owner from creating a product using the same methods tied to the geographical significance of that location to make the item as laid out in the rules that are set out  for the indication of the product. People get protection for a geographical indication by gaining a right over the sign that makes up the indication of the product connected to the place.

GI IN INDIA

India’s Geographical Indications (GIs) showcase its cultural heritage and regional diversity, featuring unique products like Darjeeling Tea, Basmati Rice, Banarasi Sarees, and Pashmina Shawls. The GI system, governed by the Geographical Indications of Goods Act, 1999, aligns with the World Trade Organization’s TRIPS Agreement. With over 600 GI-tagged products, India promotes traditional knowledge, rural development, and employment opportunities. Economic Impact of this GI’s-

• Enhanced Market Value and Global Competitiveness: When a product receives a GI tag, it is recognized as a mark of authenticity and quality. This precious endorsement:
• Builds Trust: Consumers both domestic and international perceive GI-tagged products as carrying a guarantee of origin and traditional purity.
• Command Premium Pricing: Authenticity lets local producers present their goods at top dollar. Darjeeling Tea’s GI status, for example, indicates it is more than just tea; it’s an experience with a higher market value that reflects its own flavor and legacy.
• Local Artist and Farmer Empowerment :GI tags create an environment where local talent and traditional handicap thrive, not only ensure product origin. Recognizing traditional techniques, GIs inspire artists to preserve their legacy while also innovating within quality criteria. Agricultural and artisanal communities gain from both direct (production, processing) and indirect (packaging, marketing, logistics) job opportunities, so improving rural employment and lowering urban migration.
• Niche worldwide sectors : Making sure the GI tag stays a strong marker. Stronger and more ecologically friendly local economies
• The GI system fosters communities with more self-sustaining and resilience: GI-tagged products sometimes result in local clusters where cooperation among producers, cooperatives, and local governments generates a strong ecosystem.
• Reinvestment Locally: A large portion of income is reinvested back into the community as sales rise and profits expand improving local infrastructure, education, and healthcare, so supporting even more economic development.
• Increasing Export Prospectives and International Cooperation: A GI tag is a passport to the worldwide scene, not only a local insignia. GI awareness helps local businesses, which often attracts visitors from all around the world eager to learn more about the cultural legacy of these well-known objects. Credibility on the international market lets local goods enter, fight in, and occasionally take front stage in niche worldwide markets.
• Strategic Trade Partnerships: Since GI identification guarantees adherence to particular criteria and standards, countries often want goods with GI identification. This results in mutually beneficial trade relationships, foreign exchange, and local industry development stimulation by means of trade.

Difficulties and Long-Term Thoughts

Although the advantages are clear-cut, fully using a GI tag calls for:

• Local producers gain most when storage, processing, and logistics all improve concurrently.
• Training and awareness of best practices in manufacturing and marketing will help local businesses to regularly satisfy quality criteria.
• Legal and Administrative Support: Constant government body support helps to prevent imitation of GI tag strong as a sign of authentic quality.

TRIPS Agreement RELATING and Lisbon Agreement

The TRIPS Agreement deals with GIs and other forms of intellectual property by regulating the minimal degree of protection for a given product to some region that it is related to. It also provides for the curbing of competition and removal of unfair means of selling and for the trademark regime to legally contest an abuse. The Lisbon Agreement sets out the rules for international registration of appellations of origins, which, in member countries, enjoy protection against all unauthorised uses. The WIPO looks after the Lisbon Agreement, whose purpose is ensuring equitable trade and uniform protection of local products and regions.

Prominent Case Laws:

• TEA BOARD OF INDIA v. ITC LIMITED 2011 (45) PTC 275 (CAL)

Darjeeling Tea was the first product to receive the GI Tag in India in the year 2004-2005.A premium exclusive lounge named “Darjeeling Lounge” has existed at ITC Sonar Hotel since 2003. A civil suit was filed in 2010 at Calcutta High Court praying for an interim injunction to restrain ITC Limited from using the Trademark Darjeeling Lounge.

The defendant argued that the lounge had no relation with the term tea, and it is not the most significant feature of Darjeeling Lounge. In the end, the litigation was resolved in favor of ITC. The Court determined that Plaintiff’s registered GI and Certification trademarks are limited to tea and that lounge services are not covered by the protection they provide.

• STATE OF TAMIL NADU STATE OF KARNATAKA (2017) 2 SCC 362

Karnataka’s exclusive GI rights over Mysore Silk were confirmed in the State of Tamil Nadu v. State of Karnataka case, acknowledging the state’s distinctive weaving traditions, legacy, and place of origin. Tamil Nadu’s claim, according to the Supreme Court, lacks adequate historical and cultural connections to the commodity. This ruling reaffirmed India’s dedication to preserving regional handicrafts and genuine goods. Mysore Silk’s export value and customer confidence increased as a result of its increased international renown.

RECENT GI’S

Similipal kai chutney:

Similipal kai chutney is a savory chutney made from red weaver ants, ginger, garlic, chiles, and salt. The tradtitional good that is been made is the food that belongs to the Mayurbhanj and Keonjhar tribes that reside in the parts of odisha. The speciality of this chutney is that it has nutritional value. It also has healing properties embedded in it . It was awarded GI tag on 2nd of January 2024.

Gucchi mushroom:

The Gucchi mushroom from Jammu and Kashmir was given a Geographical Indication (GI) tag in 2022. It has been recognised for its unique health benefits, from being rich in Vitamin B, C, D, K to being one of the expensive type of mushrooms price ranging from rs 20000- 50000k. It has been found growing out in the wild ranges of Himalayas.

CONCLUSION

In reality to really keep up with the cultural heritage and to keep it alive in respect of creating jobs, and push for sustainable growth, we definitely need Geographical Indications (GI). They really capture what makes a location special through their products and for what they are know for and indicating  them as badges of quality, authenticity, and tradition. In India, GIs do a great job of boosting rural areas, strengthening communities, and opening up doors to international markets. But here’s the thing: we still need to raise awareness about them, improve infrastructure, and beef up legal protections if we want to tap into their true potential. By protecting and promoting these GIs, we not only safeguard traditional knowledge but also help bring prosperity to the regions where they originate.