How Standardisation Can Help In Growth Of Geographical Indications

Blaise Fernandes Feb 17, 2022

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The attempt must be to achieve a standardised GI product from the very beginning. This will give the consumer comfort and confidence every time the consumer reorders the GI product. The GI association at the local or micro level will have to set the criteria for the GI standardisation. Standardisation will help create trust and credibility with the consumer.

The GI Product and GI Brand

A) Product Component:

Enabler 1: Carpet Export Promotion Council that enables carpet rating scheme can assist in maintaining standardisation in terms of yarn, dimensions, the thickness of carpets, etc.

Enabler 2: Indian Institute of Carpet Technology based out of Bhadohi (GI for carpets) can assist on the technical front for ways to ensure standardisation.

B) Product Differentiation tags like “organic”, “handmade”, “eco-friendly”, etc. are enablers to drive up volumes. These tags will be examined for authenticity and verified by the domestic GI association.

Enabler 3: Quality Council of India at the request of DPIIT will set the terms of reference for I.A product component & I.B product differentiation.

Enabler 4: National Institute of Training for Standardisation (NITS) under Bureau of Indian Standards for quality training in fields of standardisation, quality assurance, management systems, certification, lab testing, etc.

Enabler 5: Committees set up for each industry to follow the example of Tea Board of India – eventually to set up quality control laboratories, work on guidelines for participation in exhibitions and fairs, conduct research on best practices, and ensure standardisation for their respective industries.

C) Basic Packaging and Product Presentation - Creation of a pan India GI brand/theme. Example: The brand Incredible India is today associated with Indian tourism.

D) Ethical Practices like hygiene, avoidance of child labor, are very important for both domestic and global markets. Sharing clear and truthful communication has led to an increase in sales. A 2010 study by Mulki et al suggests that “when customers believe that the firm is ethical, the inducements and special treatments received are seen in a positive light and can help develop loyalty.

E) Environmental, Social, and Governance (ESG) among Geographical Indications producers.Approach: Encourage ESG activity by mapping corporates that specialise in a certain sector to the MSMEs in the same sector or geographic region. Implementation: Audits for energy use, workshops for sensitisation among employees, capacity building on energy efficiency, health camps/training, basic hygiene facilities like drinking water and restrooms, financial literacy campaigns.

Additionally, a new website dedicated to GI producers can have a tile/section titled “ESG toolkit” that details guidelines and self-testing methods for matters related to practices in the ESG space.

Enabler 6: National Institute of Design at the request of DPIIT will be responsible for designing C: basic packaging and product presentation labels, D: Ethical Practices tags & E: ESG tags.

Enabler 7: Recent efforts to support the efficacy of the GI tag include an initiative by the Ministry of Culture with the Indira Gandhi National Centre of Arts (IGNCA) setting up incubation cells. This collaboration can facilitate the development of GI crafts by further collaborating with institutes under NID and NITS.

The Custodians / Sherpas

1) CII/ FICCI/ASSOCHAM GI COMMITTE

a) We recommend that one of the national chambers of commerce set up a GI Producer National Council aka GIPNC where each GI product has one or more local association representatives on the national council. The respective local GI associations must complete or attempt to get each GI manufacturer registered with the local GI association. Per the MSME Minister's submission in parliament of the 63 million MSMEs in India, only 2.5 million have been registered.¹⁶ The lack of a comprehensive MSME database has hampered the growth and development of the MSME sector as government and NGO/Corporate developmental initiatives for MSMEs have not been able to reach them. The formation of a National Council of GI Producers & Formation of local GI associations with a comprehensive database should be undertaken and completed between October 2021 and March 2022. The GIPNC to submit the following to DPIIT via the designated national chamber of commerce:

I) Terms of Reference for GIPNC

ii) Recommendations for ease of doing business for GI producers

b) Department for Promotion of Industry and Internal Trade (DPIIT) to set up a GI Board. Each GI association to have a member on the board. The board will function on the lines of the Tea and Coffee Boards of India.