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One District One Product Scheme

26th January, 2022

Figure 4: No Copyright Infringement Intended

Context:

  • The much-touted One District One Product (ODOP) scheme launched by the state government to encourage setting up of processing units for local agrarian produce has failed to make much headway.

 

About the Scheme:

  • Philosophy behind the Scheme: ODOP's philosophy is to choose a brand and promote one product from each district of India that has a unique attribute or is native to that region/district, in order to facilitate lucrative trade in that product and create jobs.
  • The following organisations are involved: The Department of Commerce, through the DGFT, is working with state and federal entities to promote the One District One Product project.
  • Goals: To turn each of the country's districts into an export hub by finding products with export potential in each district.
  • Identification of Product: Each district must identify a food product, with a particular emphasis on perishable agricultural produce, cereal-based products, or a food product widely produced in the district and its linked sectors.
  • Creation of Value Chains: It will also serve as a foundation for the creation of value chains and the alignment of support infrastructure. In a district, more than one cluster of products can be established.
  • Setting up of District Export Promotion Committee (DEPC): All Indian districts, with the exception of West Bengal districts, have a District Export Promotion Committee (DEPC).

Objectives:

  • By addressing bottlenecks in the export of these products
  • Assisting local exporters/manufacturers in scaling up production
  • Identifying potential buyers outside of India with the goal of promoting exports
  • Promoting the manufacturing and service industries in the district, and creating jobs in the district.

 

Significance of the Scheme:

  • Increasing economic growth, job creation, and rural entrepreneurship. (AtmaNirbhar Bharat's goal)
  • To enable all regions to experience holistic socioeconomic growth.
  • To increase manufacturing and exports in the District by attracting investment.
  • To create an environment that encourages innovation and the use of technology at the district level so that it can compete in both domestic and international markets.