GI tags are to celebrate the uniqueness of a product and its origin.
Every product is a combination of natural ingredients and people’s creativity which is preserved carefully for generations. Therefore, Geographical Indication (GI) tags are determined. It is the sign used on products with specific geographical origin or specific quality due to the region.
But what is the significance of the GI tag?
It is beneficial for exporting products. GI tags ensure the quality and uniqueness of the product that eventually increases its demand.
It boosts tourism. Products from specific geographical regions attract more tourists.
It benefits the farmers. They receive a percentage benefit after selling the products with GI tags.
It boosts the MSME sector. Micro, Small and Medium Enterprises (MSME) receive benefits due to GI tagged products.
It helps to stop duplicate items. GI tags are to discriminate the original from others.
The parliament of India has passed the Geographical Indication of Goods (Registration and Protection) Act, 1999. The Controller General of Patents, Designs and Trade Marks or the Registrar of Geographical Indications determines the quality of products such as agricultural goods, food, drinks, handicrafts and other industrial products.
India continues to be an agriculture dominating economy by exporting primary commodities to different countries. It mainly includes rice, sugar, spices, tea and others. Therefore, to increase agricultural growth and farmers’ income, export needs to play an important role. The Agriculture Export Policy 2018 has increased the rate of agricultural exports.
Can the GI tag impact the Indian export market?
To increase the brand value of Indian agricultural products in the global market, India should take initiatives through GI tags. Using GI tags on organically produced goods will increase their demand globally, which will benefit different sectors. Tagging items can fetch a better price than usual as it includes authenticity and loyalty. Globally recognised brands are at high stature in their respective product groups. It also adds differential value to the branded/ tagged ones.
It is possible only if India can increase production by a certain amount. Therefore, the government must take initiatives to encourage awareness among the production sector of the country. Currently, India has registered more than 300 Geographical Indices (GIs), among which Basmati rice and Darjeeling tea. An initiative is taken under the Directorate General of Foreign Trade policies during 2015-2020 to promote branding and commercialisation.
The production sector should have proper funding, tax breaks and education to make GI tags count.
