Geographical Indication's Implications on Local Resources in the Indian Handicraft Sector: A Critical Examination of Resource Depletion and Environmental Impact

Abstract: Geographical Indication (GI) policy developed to safeguards products linked to specific regions, emphasizing unique characteristics. In the handicraft sector, these characteristics arise from culturally embedded skills and the use of eco-friendly, locally sourced resources. Examples like Pashmina shawls, Channapatna toys, and Dhokra casting showcase such distinctiveness. GI registration requires detailed documentation of appearance, techniques, and materials, which artisans must adhere to for continued benefits. However, this reliance on specific resources may increase demand and pressure local ecosystems, potentially leading to material scarcity, ecological degradation, and even the extinction of certain crafts. While GI policy aims to promote and protect artisanal livelihoods, it may inadvertently contribute to unsustainable practices. This paper critically examines this dual impact—how GI policies both support and strain the handicraft ecosystem—and argues for the integration of sustainability measures into GI frameworks to balance cultural preservation with ecological responsibility for long-term resilience. Keywords: Geographical Indications, Indian Handicrafts, Local Resources, Sustainability, Artisanal Economy JEL Classification Number: O350, M310, M370