On GI Tags – Is India sub-leveraging the advantages of GI tagging?

Source: This post on GI Tags has been created based on the article “Is India sub-leveraging the advantages of GI tagging?” published in Business Standard on 28^th October 2023.

UPSC Syllabus Topic: GS Paper 3 Science & Technology – Issues relating to Intellectual Property Rights.

News: This article discusses the implications of Geographic Indication or GI-Tag. It also highlights the issues with India’s utilization of the GI-Tag.

What is a GI Tag?

According to the World Intellectual Property Organisation (WIPO), a GI tag is a sign used on products that have a specific geographical origin and possess qualities or a reputation that is due to that origin.

A GI right prevents its use by a third party whose product does not conform to the applicable standards.

However, a protected GI does not enable the holder to prevent someone from making a product using the same techniques as those set out in the standards for that indication.

GI tags in India are issued as per the Geographical Indications of Goods (Registration and Protection) Act, of 1999.

What is the importance of a GI Tag?

1) Revenue generator: Patents and copyright protection of products result in higher economic gains, fostering quality production and better distribution of profits.

2) Global reach: For e.g., Amazon’s ‘local to global’ programme has taken Indian GI-tagged products to the global market.

3) Passion economy and entrepreneurship: It will convert talent into entrepreneurship and create a “passion” economy.

4) Employment creation: The labour-intensive nature of GI-tagged products can boost the employment in India.

5) Women empowerment: It can also increase India’s low female labour force participation rate.

6) Reverse urban migration: it will conserve India’s ancient crafts, culture and food and may also rejuvenate local MSMEs.

7) Positive benefits for local communities: It encourage the preservation of biodiversity, local know-how and natural resources.

8) Soft power: A strong GI ecosystem can be a source of soft power. For instance, French Champagne.

9) Consumer rights: GIs protects producers and their reputations and reassures consumers that a product is authentic.

10) Preserve intellectual property: They authenticate and symbolise an IPR owned collectively by producers in a region.

What are the challenges India is facing with respect to GI-Tags?

1) Lack of a strategy for using the GI to commercial advantage, especially in global markets.

2) Lack of organised effort — governmental or institutional — to go beyond merely establishing distinctiveness.

3) Lack of dedication to quality control, as opposed to a mere indication of source. For instance, in the case of Alphonso Mango.

4) Lack of marketing, branding, advertising, and trade promotions. For instance, with respect to Basmati rice.

What should be the way forward?

First, a required skill for GI producers is digital literacy. This should be a priority agenda item for NGOs and stakeholders like the DPIIT.

Second, the Indian GI economy can showcase to the world a model for ethical capitalism, social entrepreneurship, de-urbanisation, and bringing women to the workforce.

Third, regular audits and consultations with the GI producers must be mandated.

Fourth, organised marketing and value creation to grow the exclusivity and premiumness attached to their products.

Question for practice:

Despite earning GI-Tags for a wide range of domestic products, India has failed to utilize the certification fully. Analyse.