Context: The National Bank for Agriculture and Rural Development (NABARD) has commissioned a study to evaluate the impact of Geographical Indication (GI) products, with Symbiosis School of Economics chosen as the research partner.

Key-highlights

• According to details shared by NABARD, it has sanctioned projects for registration of 15,820 producers/manufacturers of GI products as authorised users, providing them the exclusive right to use registered GI.

• This particular study will enable NABARD to analyse the benefits accrued to artisans/producers because of the GI tags over the years. 

• Expansion of GI Portfolio: NABARD's support has led to the GI tagging of 144 products to date.

• Notably, the journey began with PochampallyIkat from Telangana (formerly united Andhra Pradesh).

• Diverse Range of GI Products: Artisans across various regions have embraced the GI registration, showcasing the rich cultural diversity of India. Notable examples include Banaras Brocades and Sarees (Uttar Pradesh), Blue Pottery of Jaipur (Rajasthan), Ilkal Saree (Karnataka), Jalna Sweet Orange (Maharashtra), and NakshiKantha (West Bengal), among others.

• A geographical indication (GI) serves as a mark of origin for products possessing unique qualities or reputations attributable to their specific geographical location.

About NABARD (National Bank for Agriculture and Rural Development)

• NABARD is India's apex development bank dedicated to agriculture and rural development.

• The bank is fully owned by the Government of India and operates out of its headquarters in Mumbai.

• Established under the National Bank for Agriculture and Rural Development Act of 1981, NABARD focuses on sustainable and equitable development in agricultural and rural sectors.

Historical Background

• NABARD was established in 1982, following legislation passed by Parliament based on the B. Sivaraman committee report of 1979.

• The Reserve Bank of India (RBI) played a crucial role in the formation of NABARD by creating CRAFICARD to evaluate institutional credit for agriculture and rural development.

• The foundation of NABARD involved amalgamating the Agricultural Credit Department, the Rural Planning and Credit Cell of the RBI, and the Agricultural Refinance and Development Corporation.

Transformation of NABARD

• The NABARD (Amendment) Bill of 2017, passed in 2018, increased its authorized capital from Rs. 5,000 crore to Rs. 30,000 crore.

• This amendment also transferred RBI's shares to the central government, which now holds at least 51% of NABARD's share capital.

• NABARD's scope was expanded to include support for MSMEs in the manufacturing and service sectors, with increased financial thresholds.

Structure of Governance

• NABARD is governed by a Board of Directors, which includes a Chairperson, rural economy experts, three RBI directors, government officials, and elected non-government shareholder members.

• An Executive Committee, a subset of the board, is tasked with handling specific functions delegated by the board.

Functions of NABARD

• NABARD offers financial and refinance support for rural infrastructure and agricultural development.

• It is involved in developing and implementing government schemes, providing training, and offering marketing support to artisans.

• The bank supervises and supports Cooperative Banks and Regional Rural Banks, integrating them with modern banking technologies like the Core Banking Solution.

• Additionally, NABARD prepares district-level credit plans to guide the banking sector in achieving targets for agricultural credit.