Study reveals Keralam's GI-tagged handlooms struggle for long-term economic gains

A recent study on Keralam's GI-tagged handloom sector has found that initial improvements in sales and weavers' wages following Geographical Indication registration failed to translate into sustained long-term economic growth.

Led by RS Praveen Raj of CSIR-NIIST, Thiruvananthapuram, along with researchers Sravanth T, Valenrebinro G, Mohan B, and Vismitha VM, the 'Socio-economic Impact Study of GIs from Handloom Sector in Kerala' evaluated the performance of four GI-registered products across the state.

The products studied include Balaramapuram Sarees and Fine Cotton Fabrics (GI No. 152), Kasargode Sarees (GI No. 170), Kuthampally Sarees (GI No. 179), and Chendamangalam Dhoties and Set Mundu (GI No. 225). These items represent geographical clusters in the south, north, and central regions of Keralam.

Researchers compared market and socio-economic indicators before and after GI registration. While the findings showed moderate improvements in annual sales and wages in the years immediately following recognition, the momentum weakened over time. The long-term performance of handloom cooperatives indicated declining real sales, a loss of purchasing power in wages when adjusted for inflation, and a continuous drop in the number of active weavers.

The study highlights that a GI tag, often called the 'poor man's IP', acts as a collective intellectual property right indicating regional origin, quality, and reputation. India enacted the Geographical Indication of Goods (Registration and Protection) Act in 1999 to legally protect such goods, prevent misuse, and help producers in domestic and international markets.

However, the researchers caution that the long-term decline cannot be blamed solely on the GI system. The sector faces multiple simultaneous pressures, including intense competition from powerloom products, rising input and production costs, shifting consumer preferences, and inadequate marketing and branding frameworks.

Additionally, the traditional handloom workforce is ageing, and younger generations show reluctance to enter weaving as an occupation.

The study concludes that legal recognition via a GI tag serves only as a starting point. Securing lasting economic benefits requires a supportive market ecosystem comprising stronger branding, targeted marketing, better distribution channels, product diversification, and structural measures to make weaving viable for younger workers.

"This study offers a realistic look at intellectual property tools like Geographical Indication tags. While legal protection and regional branding improve initial visibility and market recognition, they cannot substitute for a complete commercial ecosystem. For traditional artisan sectors to thrive economically, legal tags must be backed by continuous investments in supply chain efficiency, modern product design, aggressive marketing, and workforce development to combat rising input costs and changing consumer trends." — Dr. Shishir Gupta, Founder & CEO, StartupLanes