With an eye on China, India to expand GI listings

GI products play a critical role in export promotion by highlighting the unique qualities tied to specific regions, cultures, and production methods. (Bloomberg)
GI products play a critical role in export promotion by highlighting the unique qualities tied to specific regions, cultures, and production methods. (Bloomberg)

Summary

  • While India has over 640 GI-tagged products, this is far behind China's 7,247.
  • Many Indian GI varieties of mangoes are now being grown in other countries, including China.

New Delhi: With an eye on China, India is intensifying efforts to expand the number of Geographical Indication (GI) products to scale up exports and secure premium pricing in global markets, two people aware of the development said.

GI products play a critical role in export promotion by highlighting the unique qualities tied to specific regions, cultures, and production methods.

The plan to close the gap with competitors such as China, which currently leads with a significantly larger GI product portfolio, involves registering a large number of unique products identified across 761 districts under the One District One Product (ODOP) plan, the first person said.

As of now, 1,102 products are registered under the scheme, which was launched in 2018 to promote unique products from each district, boost local businesses, and increase their exports.

While India has over 640 GI-tagged products, this is far behind China's 7,247. The total number of global GI products stands at 69,900.

India is also facing challenges in protecting its own GI products, as many GI varieties of mangoes are now being grown in other countries, including China, and exported as products of those nations. This poses tough competition for Indian mangoes.

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A report by Mint on 15 August highlighted that Indian varieties of mangoes grown in China are becoming more popular than those grown in India. Additionally, China has surpassed India in mango exports, further intensifying the competition.

Similarly, India's GI-tagged Basmati rice is facing a challenge from Pakistan in the European Union. Both countries claim rights over Basmati, and Pakistan's efforts to secure its own recognition for the rice variety in the EU market have led to a dispute, impacting India's dominance in Basmati exports to Europe, as reported by Mint on 21 April. 

Govt focusing on boosting trade of unique products   

“Apart from increasing the number of GI products, the government is also focusing on boosting trade of unique products to help them fetch premium prices. India has great potential for this due to the diverse climatic conditions in different parts of the country," the second person said.

Citing the example of the GI tag given to Ladakh’s famous Raktsey Karpo Apricot, known for its unique taste, this person said that this apricot has significant global export potential due to its distinctiveness.

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Among the 1,102 products registered under the ODOP scheme, some have already received the GI tag, while others are in the process of getting registered.

“The government is actively encouraging states to come forward and get their unique products registered under the GI category to enhance their market value and recognition," the first person said.

As India sets its sights on becoming a $7 trillion economy by 2030, along with achieving $1 trillion in merchandise exports, the ODOP initiative will play a critical role.

“By harnessing local resources and expertise, the scheme will help continue enhancing the country’s resource efficiency, creating significant employment opportunities, and uplifting the socioeconomic landscape of every district in the country," this person said.

Products bearing GI tags not only enjoy legal protection from imitation but also command premium prices in international markets due to their authenticity and quality assurance.

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India’s total exports of goods amounted to $443.72 billion in FY23, but this figure slightly decreased to $433.09 billion in FY24 due to various disruptions and a slowdown in the global economy.

India's most notable GI products include Darjeeling Tea from West Bengal, known for its unique muscatel flavor, and Kanchipuram Silk Sarees from Tamil Nadu, made from pure mulberry silk with intricate designs.

Mysore Silk from Karnataka is famous for its vibrant colors and fine craftsmanship, while Kashmir Saffron is renowned for its rich aroma and flavor, making it the world's most expensive spice.

Odisha Rasagola, a sweet made from cottage cheese, showcases local confectionery skills, and Basmati Rice is valued for its aroma and taste.

The Tirupati Laddu, a sacred sweet from Tirumala, holds a GI tag for its exclusive production.

"Despite their vast potential, Indian GI products face significant challenges compared to their international counterparts. These products have unique qualities and cultural value, but often lack global brand recognition and strong marketing strategies," said Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI).

"Many Indian GI products are still unknown internationally due to poor branding, limited promotion, and restricted access to global markets," Srivastava explained.

"Unlike countries like France or China, where GI products are marketed as premium items with rich heritage, India's products often remain confined to niche markets," he added.

Queries sent to the commerce ministry remained unanswered till press time.

 

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