One District One Product Initiative
Why in News: The Central Government has initiated the One District One Product (ODOP) in different States/UTs of the country. ODOP is seen as a transformational step towards realizing the true potential of a district, fueling economic growth, generating employment and rural entrepreneurship, taking us to the goal of Aatmanirbhar Bharat.
ODOP initiative is operationally merged with ‘Districts as Export Hub (DEH)’ initiative of the DGFT, Department of Commerce, with the Department for Promotion of Industry and Internal Trade (DPIIT) as a major stakeholder.
Aim: The ODOP Initiative is aimed at fostering balanced regional development across all districts of the country enabling holistic socio-economic growth across all regions. The objective is to convert each District of the country into a manufacturing and Export Hub by identifying products with export potential in the District. Institutional mechanisms in the form of State Export Promotion Committees (SEPCs) and District Export Promotion Committees (DEPCs) have been constituted in 36 States/UTs to provide support for export promotion and address the bottlenecks for export growth in the districts.
Districts’ Export Action Plans are prepared for identified products and services for overseas markets, which includes specific actions required to support local exporters /manufacturers in producing/manufacturing identified products in adequate quantity and with the requisite quality, for reaching potential buyers.
These plans also include identifying and addressing challenges for exports of such identified products/services, improving supply chains, market accessibility and handholding for increasing exports. So far, in about 557 districts, export plans have been prepared and in about 218 have been adopted by DEPCs.
Products have been identified under ODOP and DEH across each district in the country. The range of the chosen products covers multiple sectors, Ministries and Departments, including products of farmers, weavers, artisans, other producers and sellers of districts.
ODOP/DEH initiatives contribute to the goal of Atma Nirbhar Bharat, Vocal for local and Make in India, by providing opportunities for employment, through significantly increasing the manufacturing and exports of identified products.
It was launched in January 2018, by the Uttar Pradesh Government, and due to its success, was later adopted by the Central Government.
Background: The ‘One District, One Product (ODOP) was launched by the Ministry of Food Processing Industries in 2018, to help districts reach their full potential, foster economic and socio-cultural growth, and create employment opportunities, especially in rural areas.
The initiative is carried out with the ‘Districts as Exports Hub’ initiative by the Directorate General of Foreign Trade (DGFT), Department of Commerce.
It is a centrally sponsored scheme to be shared by the central government and states in 60:40 contributions.
The ODOP initiative is aimed at manifesting the vision of the Hon’ble Prime Minister of India to foster balanced regional development across all districts of the country.
The idea is to select, brand, and promote One Product from each District of the country
- For enabling holistic socioeconomic growth across all regions
- To attract investment in the District to boost manufacturing and exports
- To generate employment in the District
- To provide an ecosystem for Innovation/ use of Technology at the District level to make them competitive with domestic as well as international market
Advantages of the One District One Product (ODOP) initiative
- Numerous micro-enterprises will benefit through access to information, better exposure to the market, and formalization.
- It will enable them to formalize, grow and become competitive in national and global space.
- The project is likely to generate valuable skilled and semi-skilled jobs.
- The scheme envisages increased access to credit by existing micro food processing entrepreneurs, women entrepreneurs, and entrepreneurs in the Aspirational Districts.
- There will be better integration with organized markets, boosting the artisans and local vendors.
- Increased access to common services like sorting, grading, processing, packaging, storage, etc. will be an added advantage.
This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash, in a written reply in the Lok Sabha