From Roots to Riches – The Economic and Cultural Value of Geographical Indications

Maheshwari & Co.Maheshwari & Co.
10 min read

Geographical Indications (“GIs”) have often been referred to as the ‘Sleeping Beauty’ of the intellectual property world,” as aptly described by Marcus Höpperger, a legal expert and speaker representing the World Intellectual Property Organization (“WIPO”) during the 2007 Beijing Symposium. This metaphor reflects the paradox that, although GIs have existed for centuries—rooted deeply in regional traditions and product identity—their strategic and commercial potential has only been globally recognized in recent years. This renewed attention has triggered an international awakening to the cultural, economic, and legal significance of GIs, positioning them as a fast-emerging facet of intellectual property rights that requires robust protection and promotion.

What is a GI? The term GI was introduced in the World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights (“TRIPS”). A GI is a sign used on products that originate from a specific geographical region and possess qualities, characteristics, and/or a reputation essentially attributable to that origin.[1] Roquefort cheese from France is among the earliest known examples of a GI, with origins tracing back to Roman times. According to legend, it was accidentally created when a shepherd left his meal of bread and cheese in a cave and, upon returning weeks later, discovered the cheese had developed a distinctive mold and flavor!

To qualify as a GI, the sign must clearly identify the product as coming from a particular place. In fact, the product’s unique attributes are typically a result of local factors such as climate, soil, traditional practices, or indigenous knowledge, thereby establishing a strong link between the product and its place of production. The WIPO defines GI as signs used on goods that have a specific geographical origin and possess qualities or a reputation that are due to that origin.

GIs apply to a wide range of goods, including agricultural products, wines and spirits, foodstuffs, handicrafts, and certain industrial products. As a growing and influential category of intellectual property, GIs serve to authenticate a product’s regional origin and distinctive qualities. In doing so, they help protect longstanding production techniques and artisanal expertise tied to specific locales. Beyond cultural preservation, GIs also offer economic benefits—empowering local producers to secure premium pricing for genuine, location-specific goods. Additionally, by formally recognizing and valuing traditional practices, GIs help reinforce cultural identity and instil pride within communities, as demonstrated by various well-known GI-registered products around the world.

As of July 2025, there are 697 registered Geographical Indications in India.[2] This total includes both Indian-origin and foreign-origin GI tags across all sectors such as agriculture, handicrafts, food, manufactured goods, to name a few. This article explores the critical role of Geographical Indications (GIs) in safeguarding traditional knowledge and maintaining cultural heritage and the challenges that GI registration and enforcement face in the current ecosystem.

Legal framework protecting GI in India

The Delhi High Court, in the case of Asociacion De Productores De Pisco A.G.V. Union of India & Ors***[3]***, explains GIs as:

The GI Act seeks to protect and promote goods with a specific geographical origin. The Act was enacted to prevent unauthorized persons from misusing GIs and in order to protect consumers from deceptive trade practices, and to promote economic prosperity and protection to the producers of unique goods attached to a region. Furthermore, the legislative regime brought forth regarding GI by way of this Act, was in compliance to the TRIPS Agreement, which in effect would provide for reciprocal protection to the GIs which are recognized in India as well. Thus, the GI Act, while ensuring protection to producers, also envisages curtailing any manner of confusion or deception to the consumer, with regards to goods under the different GIs.”

India has established a comprehensive legal framework for the protection of GI through the Geographical Indications of Goods (Registration and Protection) Act, 1999 (the “GI Act”). The GI Act, which came into effect on September 15, 2003, serves as the primary legislation governing GI registrations in India.

This legislation provides the statutory basis for the registration, enforcement, and safeguarding of GIs across the country. Its primary objective is to protect the distinct qualities, characteristics, and reputation of goods that originate from specific geographical regions, thereby ensuring legal recognition and economic benefits for producers while preserving the cultural and traditional heritage associated with such products. A key feature of the Act is the establishment of the Geographical Indications Registry, which is responsible for processing applications and granting GI certifications.

A Geographical Indication (GI) is protected and registered through the Geographical Indications Registry by submitting an application along with a supporting statement that clearly establishes the product’s link to its geographical origin. The application must demonstrate the product’s reputation, cultural relevance, and the traditional knowledge involved in its production. Once registered, the GI confers exclusive rights to the registered proprietor to use the indication in connection with the goods specified. GI registration is valid for a period of ten years and may be renewed indefinitely in successive ten-year terms

Unauthorized use of a registered GI constitutes infringement under the GI Act[4]. Such infringement occurs when a GI is used by unauthorized parties in a manner that misleads consumers regarding the true origin of the product, thereby harming the reputation and distinctiveness of the genuine goods. The Act provides for civil remedies such as injunctions, damages, and account of profits, as well as criminal penalties, which include imprisonment for a term that may extend to three years and fines up to ₹2 lakhs, or both.[5]

Economic and Cultural Impact of GI

  1. Legal Protection and Unauthorised Use Prevention:

Geographical Indications (GIs) grant legal recognition and exclusive rights to producers of region-specific goods. This legal protection is essential in preserving the authenticity and quality of such products. By preventing misuse, imitation, and infringement, GIs safeguard the interests of genuine producers and help maintain consumer trust. Furthermore, GIs establish a structured legal framework that ensures fair competition, allowing producers to benefit from their efforts, uphold their reputations, and protect the distinctiveness of their products in the marketplace.

  1. Stimulating Local Economies with premium prices:

GIs serve as a strategic economic asset by enhancing the value of goods that are uniquely tied to specific regions. Products with GI status often enjoy greater market appeal due to their authenticity and recognized origin, allowing producers to fetch premium prices. This recognition improves market visibility and contributes to increased demand, local employment, and overall economic activity in the area.

Globally, products such as Champagne (France), Darjeeling Tea (India), and Kona Coffee (Hawaii) illustrate how regional branding through GIs can significantly benefit local economies. These products have become synonymous with quality and tradition, transforming them into economic symbols of their respective regions.

  1. Advancing Rural Development

GIs also play a crucial role in supporting rural livelihoods, particularly for small-scale producers who rely on traditional methods passed down through generations.

In a global market often dominated by industrial-scale production, GIs offer a protective mechanism for indigenous practices and regional craftsmanship. By recognizing and legally safeguarding the cultural and historical relevance of rural products, GIs help communities maintain their traditional way of life while gaining access to better economic opportunities. GI protection ensures equitable growth that is rooted in heritage and sustainability.

Economic and Cultural Impact of GI

  1. Legal Protection and Unauthorised Use Prevention:

Geographical Indications (GIs) grant legal recognition and exclusive rights to producers of region-specific goods. This legal protection is essential in preserving the authenticity and quality of such products. By preventing misuse, imitation, and infringement, GIs safeguard the interests of genuine producers and help maintain consumer trust. Furthermore, GIs establish a structured legal framework that ensures fair competition, allowing producers to benefit from their efforts, uphold their reputations, and protect the distinctiveness of their products in the marketplace.

  1. Stimulating Local Economies with premium prices:

GIs serve as a strategic economic asset by enhancing the value of goods that are uniquely tied to specific regions. Products with GI status often enjoy greater market appeal due to their authenticity and recognized origin, allowing producers to fetch premium prices. This recognition improves market visibility and contributes to increased demand, local employment, and overall economic activity in the area.

Globally, products such as Champagne (France), Darjeeling Tea (India), and Kona Coffee (Hawaii) illustrate how regional branding through GIs can significantly benefit local economies. These products have become synonymous with quality and tradition, transforming them into economic symbols of their respective regions.

  1. Advancing Rural Development

GIs also play a crucial role in supporting rural livelihoods, particularly for small-scale producers who rely on traditional methods passed down through generations.

In a global market often dominated by industrial-scale production, GIs offer a protective mechanism for indigenous practices and regional craftsmanship. By recognizing and legally safeguarding the cultural and historical relevance of rural products, GIs help communities maintain their traditional way of life while gaining access to better economic opportunities. GI protection ensures equitable growth that is rooted in heritage and sustainability.

Challenges with GI registration and enforcement

Although Geographical Indications (GIs) provide significant advantages, they also face several hurdles, particularly in terms of enforcement, regulatory oversight, and alignment with international trade norms. Additionally, shifting consumer preferences and changing market conditions demand ongoing innovation and flexibility to keep GI protection frameworks effective and relevant.

  1. Lengthy Registration Process

Prolonged registration timeline, complex scrutiny, objections, and multiple rounds of documentation discourages producers from securing GI protection.

Substantial delay has been seen at several instances, such as in the Darjeeling Tea GI application, India’s first registered GI[6], the GI application took 7 years to reach finality and obtain a GI registration. Due to procedural complications and administrative bottlenecks, the GI for Alphonso Mangoes took over six years for registration. Another example is the 13 year long delay in obtaining a GI registration for Nagpur Oranges, resulting from insufficient documentation and repeated verifications from the Registry’s end.

  1. Weak Enforcement Mechanisms

On-ground enforcement of registered GI is inconsistent and under-resourced. Lack of awareness among producers and consumers about the significance and benefits of GI limits reporting of violations and weakens compliance of a GI registration.

For instance, Banarasi sarees have suffered from counterfeits due to the absence of adequate testing facilities. Unauthorized use of the Alphonso Mango name by sellers outside the GI-recognized region has diluted its value.

  1. Digital Piracy and Online Infringement

In the digital era, GIs are increasingly vulnerable to unauthorized online sales and counterfeiting through E-commerce platforms make. The global reach and anonymity of the internet makes enforcement against such sales even more complex. For instance, Pashmina Shawls are frequently found on websites falsely advertised as authentic.

  1. Cross-border enforcement

A key challenge in the global landscape of Geographical Indications (GIs) is the enforcement of rights beyond national borders. Despite India’s proactive measures—such as entering bilateral agreements and pursuing legal recognition of its GIs abroad—unauthorized use of Indian-origin products continues in several countries. This is particularly problematic in regions where legal systems either do not recognize GIs or offer limited protection.

Conclusion

Safeguarding Geographical Indications (GIs) is essential to preserving India’s vast cultural, agricultural, and artisanal legacy. The Geographical Indications of Goods (Registration and Protection) Act, 1999 provides a robust legal foundation that not only protects the authenticity of traditional Indian products but also enhances their market value and supports rural livelihoods.

Iconic goods such as Basmati Rice, Darjeeling Tea and Alphonso Mangoes have achieved international acclaim through GI registration, bringing economic benefits to the communities that produce them. Over the years, key judicial decisions have further strengthened the legal significance of GIs, emphasizing their role in upholding intellectual property rights and ensuring fair market practices.

Despite ongoing challenges—particularly around public awareness, enforcement, and maintaining product standards—the combined efforts of the Indian government and international partners have laid the groundwork for a stronger GI ecosystem. Collaboration between producers, legal institutions, and policymakers remains crucial to ensuring that India’s distinctive regional products continue to flourish on both national and global platforms.

[1] WIPO, Geographical Indications <https://www.wipo.int/geo_indications/en\>, accessed on 19 August, 2025.

[2] Ministry of Commerce & Industry < https://www.pib.gov.in/PressReleasePage.aspx?PRID=2146928&utm_source=chatgpt.com\> accessed on 19 August, 2025.

[3] W.P.(C)-IPD 17/2021.

[4] Section 22 of the Geographical Indications of Goods (Registration and Protection) Act, 1999.

[5] Section 39 of the Geographical Indications of Goods (Registration and Protection) Act, 1999.

[6] Thatavarthi, Gayathri. “Darjeeling Tea – First GI Tag in India” Caleidoscope, <https://www.caleidoscope.in/art-culture/darjeeling-tea-first-gi-tag-in-india\>. Accessed on 19 August, 2025.

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Maheshwari & Co.
Maheshwari & Co.