Entitling Districts & Enabling Growth: The ODOP Scheme on Indian Economy and Businesses
- Shalabh
- Jul 2
- 4 min read
A Beginner’s Guide to ODOP-
One District One Product (ODOP) is a scheme aiming to promote a product from each district in the country. The scheme aims to achieve balanced regional development & socio-economic development in India.
The One District One Product program led by ‘Invest India’ minimizes influence from foreign countries, increases self-sufficiency, and assists in domestic production. The initiative helps with building in-tangible as well as branding the in-tangible goods aiding in each region branding on a district level, thus associating their identities with individual products. As a result, there is an increase and advent of domestic manufacturing and production.
Moreover, the ODOP program supports technological advancement to local goods, empowering manufacturers to explore new solutions ensuring the easy availability in the region as well as facilitate in the world. All of these create additional work opportunities allowing people to work along with improving the rural economy and contributing to India’s export growth.
The Vision of ODOP-
The ODOP scheme anticipates uplifting the economic potential of India’s districts by recognizing and promoting specific products that each district specializes in. A prominent part of this scheme includes achieving tangible economic results by 2027 which includes a 30% growth in revenue and a 25% growth in producer incomes. By focusing on value addition, branding, and direct linkages to the markets, the ODOP ensures that farmers, local artisans, and MSMEs get better returns for their craft and produce.
In addition, another operational target under ODOP is a 70% improvement in logistical efficiency which includes the transportation, storage, and export readiness. At the same time, the scheme aims at a reduction of 40% in imports by promoting local products as feasible substitutes for foreign goods. In combination with these targets, a tactical allocation of 1% in India’s GDP to set aside for high-priority areas such as renewables and semiconductors
Challenges to Implementation-
The One District One Product (ODOP) program is certainly beneficial, however, there are a few barriers which prevent it from reaching its true potential. Weak logistics, storage, and transportation systems are some of the challenges which further exacerbate the barriers to local market access. Inadequate storage facilities further contribute to post-harvest losses for agricultural products and damage to other goods, diminishing their value and the returns for producers.
Inadequate product quality control/ branding further results in loss of competitiveness against established global trademarks. This combination of operations acts as an erosion of the trust gap. Furthermore, the scarce availability of affordable credit and investment acts as a major hindrance towards the modernization of production processes and limiting the capacity building of local enterprises.
Unlocking Possible Collaboration Synergies with ODOP-
ODOP x BharatPe: A collaboration with a payment partner like BharatPe can facilitate financial literacy programs for ODOP producers, improving their financial acumen. BharatPe can also serve as the primary payment gateway for the ODOP platform, creating a mutually beneficial arrangement.
ODOP x PMFME: The PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises) Scheme, under the same ministry as ODOP, offers branding, financial aid, digital promotion, and support for setting up food processing units. Collaboration between ODOP and PMFME can ensure financial diversification and stability for ODOP producers.
ODOP x MMLP Policy: Collaborating with the MMLP (Multi-Modal Logistics Park) policy can provide ODOP with streamlined multimodal logistics, standardized procurement processes, and expanded market access. This strategic alliance can reduce costs, shorten lead times, ensure consistent quality, and enhance credibility and investor confidence.
ODOP x NABARD: Partnering with NABARD (National Bank for Agriculture and Rural Development) can boost financial support and capacity building for ODOP producers. This collaboration can ensure growth through quality control and value addition, while also strengthening rural empowerment, credit access, and competitiveness.
Branding Strategy: Elevating India's One District One Product-
A Geographical Indication (GI) tag is a form of intellectual property that identifies a product as originating from a specific geographical location, giving it a unique quality, reputation, or characteristic attributable to that origin. A famous example of a GI Tag in India is ‘Darjeeling Tea’.
This consistent rise in GI-tagging aims at cultural preservation, protecting local practices and heritage, while insignificantly impacting trade. The GI tags are being awarded which indicates that people are becoming more conscious about the heritage and distinct features associated with the products coming from particular locations.
GI-tagged products often benefit from enhanced branding and legal protection against counterfeit goods, providing a crucial boost to Small and Medium-sized Enterprises (SMEs) and local artisans.
Empowering Rural Communities-
From the perspective of rural inclusivity, the One District One Product (ODOP) initiative plays a transformative role in uplifting local communities. By ensuring a minimum support price (MSP) for ODOP products, rural producers gain financial stability, even for niche or seasonal items, as highlighted by the MSP outlay of ₹2.4 lakh crore. This assured pricing led to a food export value of ₹2.5 lakh crore and an investment of ₹5000 crore in agri-infrastructure.
Furthermore, ODOP rewards financial stability and security which allows producers to innovate with new enhanced products in the rural sector. Empowering artisans along with farmers helps close the gap between urban and rural economies enabling self-employment opportunities and supporting balanced economic development for all regions.
Success Story-
The journey of Bathinda Honey serves as a remarkable success story, offering valuable lessons in leveraging the ODOP initiative.
References-
Author- Shalabh
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