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Australia-EU FTA deal has Indian experts seeking GI tag for basmati rice

March 30, 2026 5 min read Economics International Relations GS2 (International trade bilateral agreements) GS3 (Agriculture food processing)
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What Happened

  • The recently concluded Free Trade Agreement between Australia and the European Union includes a comprehensive Geographical Indication (GI) protection framework, requiring Australia to recognise GI tags for 231 spirits and 165 agricultural and dairy products from the EU.
  • Indian trade experts and agricultural bodies are now calling for urgent action to secure international recognition of India's GI tag for basmati rice in key markets, particularly Australia, which had previously rejected India's application for exclusive rights over the basmati name.
  • Australia rejected India's application on the grounds that basmati rice cannot be regarded as grown exclusively within India's borders, given that Pakistan also grows the variety in the same Himalayan foothill agro-ecological zone.
  • The Australia-EU FTA demonstrates that GI tags can be written into bilateral trade agreements, giving Indian negotiators a template for seeking similar protection in India's own FTA negotiations.
  • The Australia-India FTA (ECTA, signed 2022) did not include such a GI framework for Indian agricultural products, a gap that experts now want addressed.
  • The India-EU FTA, under active negotiation, is seen as a key opportunity to lock in basmati GI recognition within a major trading bloc.

Static Topic Bridges

A Geographical Indication (GI) is a sign used on products that have a specific geographical origin and possess qualities, reputation, or characteristics attributable to that origin. Under the WTO's TRIPS Agreement, GI protection is mandatory for all member countries (Article 22) with enhanced protection for wines and spirits (Article 23). India enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 in compliance with TRIPS obligations.

  • India has registered over 600 GI tags domestically, covering products from Darjeeling tea to Mysore silk to Kashmiri pashmina.
  • APEDA (Agricultural and Processed Food Products Export Development Authority) secured a GI tag for basmati rice from the Himalayan foothill region in 2016, covering seven states: Punjab, Haryana, Himachal Pradesh, Jammu & Kashmir, Uttarakhand, Western UP (26 districts), and Delhi.
  • International GI recognition is not automatic — India must negotiate recognition in each export market through bilateral agreements or individual registration processes.
  • The EU has its own Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) systems, which are among the strongest GI frameworks in the world.

Connection to this news: The Australia-EU FTA shows that GI protection can be built into trade agreements as a structured chapter, not just an afterthought. India's negotiators are being urged to replicate this in the India-EU FTA and future trade agreements to secure basmati's protected status in key export markets.

India-Pakistan Dispute Over Basmati's GI Tag

Basmati is grown in a contiguous agro-ecological region spanning both India and Pakistan — the Indo-Gangetic Plain at the foothills of the Himalayas. Both countries claim the right to use the name "Basmati" internationally, creating one of the world's most contested agricultural GI disputes. Pakistan applied for GI registration in the EU in 2020; India opposed this. The EU published Pakistan's application in April 2024, allowing a three-month opposition period.

  • India is the world's largest exporter of basmati rice, with exports exceeding $5.3 billion in FY24, going primarily to the Middle East, Europe, and the US.
  • Pakistan exports approximately $600-800 million of basmati annually, primarily to the Middle East and Europe.
  • The EU dispute is ongoing — the EU's GI system requires either a shared registration or a ruling on competing claims.
  • India has argued that Pakistan's variety, while similar, does not share the same geographic-climatic origin as Indian basmati.
  • This dispute has implications for India's agricultural trade interests in multiple markets beyond Australia.

Connection to this news: Australia's rejection of India's exclusive basmati GI claim mirrors the broader challenge India faces globally — Pakistan contests the exclusivity. The Australia-EU FTA's robust GI chapter shows one pathway to resolve such disputes through negotiated frameworks rather than litigation.

Free Trade Agreements — India's Current FTA Landscape

India has been actively expanding its FTA portfolio after a decade of relative caution. The India-UAE CEPA (February 2022) and India-Australia ECTA (December 2022) were landmark deals. Negotiations for the India-EU FTA (Broad-based Trade and Investment Agreement, BTIA) resumed in 2022 after a decade-long pause, as did talks with the UK, Canada, and the Gulf Cooperation Council (GCC).

  • The India-EU BTIA, if concluded, would cover two of the world's largest economic blocs — the EU is India's second-largest trading partner at approximately $140 billion per year.
  • Agriculture and GI protection are among the most contentious chapters in the India-EU BTIA — the EU has historically demanded reciprocal GI recognition as a condition for agricultural market access.
  • The Australia-India ECTA included some GI provisions but fell short of the comprehensive framework in the Australia-EU FTA.
  • The India-UK FTA (under negotiation) is another venue where basmati GI protection can be sought — the UK is a major importer of Indian basmati.

Connection to this news: The Australia-EU FTA sets a benchmark for GI chapters in trade agreements. Indian experts are urging the government to use ongoing FTA negotiations — particularly with the EU and UK — to lock in strong basmati protections before the India-Pakistan EU dispute resolves unfavourably.

Key Facts & Data

  • India's basmati rice exports: over $5.3 billion in FY24 — one of India's largest agricultural export earners.
  • GI tag for Indian basmati: registered by APEDA in 2016 under the GI Act 1999.
  • Seven states covered by India's basmati GI: Punjab, Haryana, HP, J&K, Uttarakhand, Western UP, Delhi.
  • Australia-EU FTA GI coverage: 231 spirits, 165 agricultural/dairy products.
  • Pakistan's EU GI application: filed 2020, published April 2024 by EU authorities.
  • India-EU bilateral trade: approximately $140 billion annually — EU is India's second-largest trading partner.
  • TRIPS Article 22: mandates basic GI protection; Article 23: enhanced protection for wines and spirits.
  • India's total registered GI tags (domestic): over 600 as of 2025.