<p>This study examines the economic impact of Geographical Indication (GI) certification on revenue diversification in the handicraft industry, focusing on Kashmir Pashmina and Kani Shawl producers. It explores how GI certification influences income, product pricing, regional development, and market accessibility to identify opportunities for sustainable growth. The study surveyed 388 GI-certified producers, using a proposed theoretical framework analyzed through Tableau and Smart PLS 4.0 for structural equation modeling. At a 5% significance level, GI certification showed a statistically significant impact on regional development, product pricing, and market accessibility, though no significant effect was found on producers’ income. This suggests that while GI certification supports regional growth, premium pricing and broader market reach, it does not directly increase producers’ earnings. These findings have important practical implications. Policymakers should continue promoting GI certification to stimulate regional development, attract investment, and enhance tourism. The positive relationship with product pricing underscores the need for effective marketing and consumer education on GI-certified products’ unique qualities. Improved market accessibility highlights the importance of investing in logistics, distribution, and e-commerce. To address stagnant income, stakeholders should ensure fair trade practices, reduce intermediaries, and offer training to improve production efficiency and quality. This research contributes valuable empirical evidence on GI certification’s economic impact in handicrafts—a sector less studied compared to agriculture. By focusing on Kashmir Pashmina and Kani Shawl, it provides nuanced insights and a theoretical framework that can guide future studies and targeted interventions to strengthen GI certification’s role in fostering sustainable business growth.</p>