Intellectual property is a property that originates from human intellect and skill. Geographical Indication is one of the parts of IP. GI is a sign used on products with a specific geographical origin and possesses qualities or a reputation due to that origin. GIs separate origin items from commodity markets by capturing local characteristics such as environmental conditions and local expertise. The main aim of this paper is to investigate about the rural development potential of the GI goods, hence a case study on the Kanchipuram silk saree producers has been conducted. The responses are collected through interview method from 15 weavers of the Kanchipuram saree. The study also attempted to find out the recognition and economic status of the weavers before and after receiving the GI tag. From the study it is concluded that the Kanchipuram textile industry has developed into a giant corporate industry, but their producers are still now facing day-to-day economic difficulties.