Archive · 3 Oct 2025
India to Resist Delinking Basmati GI from EU Trade Pact
India and the EU are negotiating a trade deal, with a key sticking point being the 'Made in India' GI tag for basmati rice.
The EU hasn't approved India's application, while Pakistan has also applied.
India views this tag as crucial to its cultural heritage and potential financial loss, whereas the EU sees it as an opportunity to fetch premium prices.
India is likely to resist delinking the GI from the trade deal, fearing this would undermine its sovereignty and heritage.
The EU is pushing for increased wine and spirits exports to India and sees the relationship as important for counterterrorism efforts.
India is unlikely to decouple basmati rice GI from the EU trade talks.
The EU has kept India’s GI application for basmati pending since July 2018.
Pakistan sought a GI tag for basmati in January 2024, opposed by Italy.
EU-India FTA has potential to boost EU wine and spirits exports to India.
India stands to lose if basmati is excluded and EU wines/spirits continue to be in the FTA.
- Who
- India and the European Union
- What
- Disagreement over Geographical Indication (GI) for basmati rice in the context of the Indo-EU free trade agreement.
- When
- India's application for basmati GI pending since July 2018, Pakistan's application filed January 2024.
- Where
- Negotiations between India and the European Union (EU).
- Why
- India is unlikely to delink basmati rice GI from the FTA, concerned about its sovereignty, heritage, and potential financial loss.
India
European Union
GI Tag for Basmati Rice
India
Views GI as linked to culture and tradition, won't compromise.
European Union
Views GI as an opportunity to fetch a premium.
FTA Delinking
India
Opposed to delinking basmati GI from the FTA, due to potential loss of revenue and sovereignty.
European Union
May suggest delinking to boost trade and avoid a dealbreaker.
- EU Basmati Rice Market Size
- $766 million
- India Basmati Exports to EU (2024-25)
- $237 million
- EU Wine/Spirits Market Share in India
- 13% ($118 million)
- Potential EU Market Access from FTA
- $600 million annually