AI-driven authentication could redefine India’s craft retail market

The National Conference on ‘GI 4 AI’, jointly organized by the Indian Institute of Technology (IIT) Madras and the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, at the IIT Campus in Chennai, recently put the spotlight on major commercial shifts in the apparel, fashion, and handicraft sectors. Industry experts came together to map out strategies on how artificial intelligence (AI) can strengthen Geographical Indication (GI) tagging, ensuring product authentication, full supply chain traceability, and higher retail price premiums for grassroots creators.

Digital proof for premium pricing

The deployment of machine learning and automated data compilation aims to directly solve the valuation gaps in the luxury and premium consumer markets. Various reports highlight Tamil Nadu is currently finalizing a comprehensive Intellectual Property Rights (IPR) policy designed to protect and commercialize its indigenous craft assets. S Vincent, Member Secretary of the Tamil Nadu State Council for Science and Technology noted the state aims to achieve a $1.5 trillion economy by 2036, with GI-certified goods expected to serve as a critical growth engine.

During 2025-26 fiscal, Tamil Nadu increased its portfolio by filing 43 new GI registration applications, bringing its total secured registry to around 69 products. Experts say, embedding digital tracking into these legacy products allows global retail consumers to verify authenticity seamlessly, enabling weavers and designers to capture the premium margins previously lost to counterfeit alternatives.

Closing the authentication gap

Despite high consumer demand for authentic indigenous products, bottlenecks remain in onboarding producers to formal retail channels. Tapan Kumar Rout, Director, Textiles Committee, Ministry of Textiles explained while nearly 50 lakh artisans are actively associated with GI-registered crafts across the country, only 20,000 are currently registered as authorized users. To solve this logistical challenge, the Ministry is launching an AI-enabled dashboard designed to streamline the identification of authorized users and provide transparent market data access.

Speeding up the registration process is critical for scaling retail supply networks. Simultaneously, N Sreedhar, Executive Director, Handloom Export Promotion Council highlighted, AI simplifies the complex task of archiving historical evidence and documenting specialized manufacturing techniques. This automated tracking preserves generational knowledge while giving commercial fashion brands the empirical verification required to secure premium retail positioning.

Funding moves beyond registration

Scaling these tech-driven consumer initiatives requires substantial capital infusion and structural alignment to meet global export standards. The National Bank for Agriculture and Rural Development (NABARD) has stepped in as a primary institutional financier, extending support worth Rs 10.38 crore to fund both registration and post-registration commercial activities. According to NABARD general manager P S  Harikrishnanraj, approximately one in every five GI products in India now receives financial backing from the institution.

A clear operational model of this strategy is the Virudhunagar Samba Vathal initiative, where NABARD went beyond administrative filing to implement critical backward linkages. By securing high-quality seed distribution and standardized packaging solutions, the initiative created a predictable, retail-ready supply chain for roughly 700 local farmers. This centralized processing facility converts raw produce into value-added commercial items under rigorous compliance frameworks.

Replicating this systematic methodology across the handloom, apparel, and craft sectors ensures that automated quality control aligns with global consumer expectations, allowing stakeholders to sustain premium wholesale and retail pricing.

Established in 1965, the Handloom Export Promotion Council drives international market access for traditional Indian textiles and apparel. Targeting key export hubs in North America and Europe, the council plans to expand its global retail footprint. It aims to boost annual artisan revenues through targeted digital trade fair initiatives.