One District One Product Scheme – Policy Watch – RSTV IAS UPSC

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• Indian Economy

One District One Product Scheme is an initiative that is seen as a transformational step forward towards realizing the true potential of a district, fuel economic growth, and generate employment and rural entrepreneurship, taking us to the goal of AtmaNirbhar Bharat. 

This scheme is basically a Japanese business development concept, which gained prominence in 1979. It is aimed at promoting a competitive and staple product from a specific area to push sales and improve the standard of living of the local population. Over time, it has been replicated in other Asian countries as well.

In India, Uttar Pradesh government was the first state of India to launch the concept of One District One Product in 2018.

Components of the Scheme: 

• Identify one product per district based on the potential and strength of a district and national priorities
• Develop a cluster for that product in the district which is capable of producing a world-class product with quality, scalability, and a brand
• Provide market linkages
• Address bottlenecks for exporting these products
• Support local exporters/manufacturers to scale up manufacturing
• Find potential buyers outside India with the aim of promoting exports
• Promoting manufacturing & services industry in the District
• Generate employment in the District 

Steps taken in India

One District One Product (ODOP) initiative is operationally merged with ‘Districts as Export Hub’ initiative being implemented by DGFT, Department of Commerce, with Department for Promotion of Industry and Internal Trade (DPIIT) as a major stakeholder.    

Financial Assistance under the ODOP Programme 

1. Common Facility Centre (CFC) Scheme: This scheme would provide financial assistance of up to 90 per cent of the project cost. It is provided by the state government.
2. Marketing Development Assistance Scheme: The financial assistance would be provided to all participants of national and international exhibitions and fairs. They can use it for displaying and selling their products selected under ODOP programme.
3. Finance Assistance Scheme (Margin Money Scheme): This scheme benefits with not whole but a margin of the project cost. The applicants receive it in the form of subsidy to set up the project.
4. Skill Development Scheme: In this, all skilled artisans would be trained through RPL (Recognition of Prior Learning). They would be certified through various Sector Skill Councils, SSCs, whereas the unskilled artisans would be trained for 10 days and provided with an advanced toolkit which will be free of cost 

GIS One District One Product (ODOP) Digital Map of India: 

By The Ministry of Food Processing 

• The digital ODOP map provides detailed information about ODOP products to all states and facilitates the stakeholders.
• The digital map also has indicators for tribal, SC, ST, and aspirational districts.
• It will enable stakeholders to make concerted efforts for its value chain development.

Under the initial phase of the ODOP programme, 106 Products have been identified from 103 districts across 27 States.

A. Uttar Pradesh

• The ancient and nutritious ‘Kala namak’ rice of Siddharthanagar
• The rare technique of wheat-stalk craft, handicraft in Bahraich
• The famous chikankari and zari-zardozi work garments
• Banana fibre of Kushinagar, 
• Banana of Kaushambi, 
• Jaggery of Ayodhya, 
• Aamla of Pratapgarh, 
• Pulses of Balrampur and Gonda, 
• Desi ghee of Auraiya, 
• Wooden toys of Chitrakoot
• Wooden artifacts of Saharanpur, Basti, Bijnor, Rae Bareli
• The horn and bone work that uses the remains of dead animals rather than living ones, making it a nature-friendly replacement for ivory.

• Sunahri Kand: To support the production of horticultural items under the “One District One Product (ODOP)” scheme and provide better nutrition to school children

B. Rajasthan: Blue Pottery (Jaipur) and MarkhanaMarbels (Nagaur)

C. Maharashtra: Wine from the Nashik valley

D. Karnataka: 

• The hilly district in Malnad region of Karnataka is known for its coffee production and accounts for 30-40% of the total coffee production in India. It is also nicknamed the ‘coffee cup’ of India.
• In Chikkamagaluru, spices were earmarked, while pineapples were chosen in Shivamogga district.
• Other products included are Kalaburagi (red gram), Mandya (jaggery), Vijayapura (lemon), Haveri (mango), Gadag (Byadagi chillies), Bidar (ginger), Ballari (fig), Mysuru (bananas), and Koppal (guava).

E. Northeast Region: To boost the economy of the region district by district through encouraging indigenous and specialised products of each district. The exceptional carpet making industry, bamboo wood vessels, cane-craft, jewellery or the handloom industry which produces some of the best silk products in the country or the agricultural products that range from the world’s best turmeric to one of the hottest chilies in the world, the possibilities are immense for the ODOP initiative to bridge the gap between the Northeast and the rest of the country while also pushing through a sustainable development model in the region.

Connecting the Dots:

• One District One Product Scheme could pave the way for a new dawn for Northeast India and its people. Discuss.