Introduction
Despite being hailed as one of the fastest-growing economies of the world and the fifth largest economy in the world, the major concern plaguing India is inequitable and imbalanced development.
With the bulk of the population still deprived of an opportunity to participate in the country's development process, the amount of social stigma and the dearth of economic facilities are lamentable. The way out from here would be to strengthen India’s rural economy, not only by giving tax concessions to invite Foreign Direct Investment and Foreign Portfolio Investment in the wake of creating employment, but also by focusing on inclusive development by spreading our local roots across the globe.
The alternative that is suggested in this piece is that India should build a market focusing on its Geographical Indications (herein, “GI Tags”). This blog will provide a holistic view of the same in a two-part piece. Economic policy can only aid a country when it accounts for the socio-cultural fabric of the region. This piece, firstly, looks into the relevance of GI products today. Secondly, it discusses the legal administration of GI tags. Thirdly, it analyses India’s current position of GI tags. Finally, it looks into the challenges hindering the growth of this market.
Present-Day Significance and Legal Administration of GI-tagged Products
The economy of the rural sector in India is dominated by the agricultural sector. If the people can be rightly employed in the production of GI food products, this will not just eliminate the need for huge investment to shift people to manufacturing and service sectors, but will also lead to reducing the rampant disguised unemployment. The production of food products will boost the secondary sector by transforming villages into “value-adding” productive units and also rejuvenate the lifeless primary sector.
India can also tap into the GI handicrafts market. From Udaipur’s koftgari metal craft to Orissa’s Patta Chitra paintings, the art of crafting authentic handicrafts has been handed down from generation to generation. However, due to a lack of adequate awareness and representation of our rich cultural heritage at national and international levels, the market for these goods is decaying, and these generational traditions are getting lost, affecting the livelihoods of many.
In the mechanical age, the economic elite seeks products that are exquisite and exhibit skilled craftsmanship. The “willingness to buy” of these buyers is also high as they are not just paying for the product itself but also recognizing the human effort behind creating it.
GI tags can also play a role in the upliftment of the socio-economic conditions of tribes in India. The tribal industry in India is still at a nascent and undeveloped stage. GI tags can go a long way in ensuring legal protection and authorized promotion, thus improving grassroots-level economics. Tribes make up about 8.6% of the total population of India, and out of them, 57% are self-employed artisans and cultivators. Also, among India’s 370 GI products, 50 are tribal products. Also, the rapid rise of industrialisation and the sub-standard quality of packaging and branding of the tribal products also pose a huge challenge as they suffer from the competitive practices of the prominent manufacturers.
However, what exactly is a GI tag? Geographical Indication is an Intellectual Property Right under the Paris Convention for the Protection of Industrial Property. It is governed by the World Trade Organisation, and in India, it is administered by the Geographical Indications of Goods (Registration and Protection) Act, 1999.
Under S.11 of this Act, any associations of persons, producers, or a body established under any law can apply for a GI tag if the applicant represents the interests of the producers of the goods concerned. Under S.18, registration of a GI tag is valid for a period of 10 years but it can be renewed from time to time.
S.21 confers the exclusive right to use a registered GI tag and protects against infringement by an unauthorized user. However, this right is reasonably limited to holders of GI tags for two similar products, like Banglar Rasogolla and Odisha Rasgola, but they are entitled to all other rights.
However, GI Tags, like any other Intellectual Property Rights, are governed by the “territoriality principle”, i.e., the right is limited to the jurisdiction where the protection was obtained and cannot be protected internationally. However, there are four routes to safeguard the GI tag as provided by the World Intellectual Property Organisation –
Direct Protection in the jurisdiction concerned
Lisbon Agreement for the Protection of Appellations of Origin and their International Registration
Madrid System for the International Registration of Marks
Bilateral agreements between States or commercial partners
As of now, India has 547 GI tags, out of which 181 are agricultural, 39 are foodstuff products, 289 are handicraft, 44 are manufactured products, and 2 are natural goods. The states that hold the greatest number of GI tags are Tamil Nadu (59), Uttar Pradesh (56) and Karnataka (50).
It is no surprise that states with high literacy rates and high contributions to national income hold more GI tags, while areas that do not have robust legal machinery or due to their very minimal population are often excluded from national considerations due to inadequate social and political representation causing them to languish behind with dismal numbers. For instance, the Union Territories of Andaman and Nicobar Islands and Lakshadweep Islands have no GI tags, while Tripura in the northeast has only 1.
Thus, a GI tags-based market, along with an interdisciplinary approach that considers livelihood, regional cohesion, social welfare, sustainable management, traditional skills, etc. not only generates employment and income but also promotes social inclusion and cultural multiplicity. Thus, the promotion of GI-tagged products will have a multi-faceted impact on rural development.
Challenges and Roadblocks
Many scholars have already pointed out the numerous issues that hinder the growth of GI tags. A key weakness of Indian GI products is the lack of strong marketing and global brand recognition. Financial and technical support has to be extended to producers to foster a conducive environment for consistent quality assurance and capacity-building.
Another key problem is the lack of follow-up after registration. Many products see a chronic decline in market share due to production methods becoming obsolete, resulting from a lack of financial or technical assistance. Since most of the products are from traditional industries, it is essential to keep a continuous check on their performance to take adequate steps to revive these industries as and when required.
Another challenge that is difficult to redress is defining geographical boundaries or determining the origin of the product. Sometimes, more than one area can claim the origin of a product. For instance, the long-standing legal dispute between the states of West Bengal and Odisha over the origin of the sweet Rasgulla. The geographical territory assumes immense importance as it is the history or geography of the place that finally gives a product its distinguished characteristic(s).
The challenges faced by GI producers, such as outdated technology, lacklustre stakeholder analysis, lack of initiative in post-registration follow-up, difficulty in defining geographical boundaries, etc., have also found no viable solutions to date.
Conclusion
Therefore, it is prudent to conclude the first part by providing the reader with these intriguing thoughts. This article has discussed why and how a GI-tags market is important in the Indian scenario. We looked into the existing legal mechanisms to administer these Intellectual Property rights and concluded the examination by analysing the present situation of GI-tagged products in the country and the obstacles that are impeding their development. In the next part, the article would further discern the policy reforms that have been introduced in this regard and accordingly, put forth some constructive suggestions vis-à-vis procedural reforms that can be brought in to address the challenges in the present framework.
This article has been authored by Kaustabh Chakrabarti, a student at the Hidayatullah National Law University, Raipur. This blog is part of the RSRR's Rolling Blog Series.
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