The Government of India has launched the One District One Product(ODOP) scheme to encourage indigenous and specialized products across all the regional districts in the country. The major focus of the government would be to generate employment and to boost the market of traditional products from various regions in the country. The Government of India aims to promote traditional products from India to the rest of the world.Embed from Getty Images
ODOP scheme was a success story in Uttar Pradesh. Looking at the potential lucrative economy, the Government of India is planning to implement the One District One Product(ODOP) scheme across the country. The Government of India has shown keen interest in promoting the One District One Product(ODOP) scheme in the North- Eastern Region of India.
The North- Eastern Region of India has the potential to become a lucrative market for traditional products. The North-Eastern Region of India shares nearly 98% borderland with neighboring countries such as Bangladesh, Myanmar, Bhutan, and China. The North-East Region of India could also act as a likely hub for traditional products, as it is in much closer proximity towards the South-East Asian market. The North-East Region of India consists of various tribes and sub-tribes. Almost all the tribes and sub-tribes have unique craft traditions and craftsmanship. The Government of India has even worked out several schemes to develop the North-East Region of India. The projects include the North-East Special Infrastructure Development Scheme(NESIDS), North-East Council(NEC), North -Eastern Region Vision 2020, etc. All the projects are aimed towards bringing economic development to the North-East Region.
Let us try and understand how the One District One Product(ODOP) scheme helped boost the economy in Uttar Pradesh. On 10 August 2018, the Hon’ble President of India, Shri Ram Nath Kovind, inaugurated the One District One Product(ODOP) Summit in Lucknow, Uttar Pradesh. The One District One Product scheme was launched during this particular summit.
The State of Uttar Pradesh is the most populous in India and has a gross state domestic product of nearly 16.89 lakh crore. Unfortunately, close to 39 percent of the population of Uttar Pradesh is poor. Thus, the One District One Product(ODOP) played a significant role in the success of Uttar Pradesh as a state.
One District One Product(ODOP) scheme focuses on one particular product from any district in the country and aims at raising the quality of the product to compete in the international market.
The ODOP scheme would also provide job opportunities to about 25 lakh unemployed individuals through Micro, Small, and Medium Enterprises(MSME). Thus, the scheme would also help improve the GDP of the state over time.
The ODOP scheme proved extremely helpful for Uttar Pradesh, as the state is famous for traditional products. The Government of Uttar Pradesh has set up product-specific traditional industrial hubs that are spread across 75 districts in the state. These products include Banarasi silk sarees from Varanasi, leather goods from Kanpur, leather footwear from Agra, brassware from Moradabad, sports goods from Meerut, and wooden products from Saharanpur, etc.
The One District One Product scheme would promote such traditional MSME industries and focus on creating local jobs and boost the economy by improving the exports of such products abroad.
Under the One District One Product(ODOP) scheme, the artisans would also be encouraged to sell the products to the online market to improve accessibility to such products all over the country.Embed from Getty Images
The Government of Uttar Pradesh has signed a memorandum of understanding with Amazon to promote the products on the online market. The Quality Control of India(QCI) would be assuring the quality of these products. Under the ODOP scheme, Amazon would also train several artisans and entrepreneurs from several districts on how to promote and list their products on marketing. The Government of Uttar Pradesh has even signed MoUs with Wipro GE Health Care, National Stock Exchange, and BSE for technical support.
Under the One District One Product scheme, the Government of Uttar Pradesh had allotted 1,000 crore soft loans to artisans and entrepreneurs running Micro, Small, and Medium Enterprises(MSME). The allotted amount would be distributed through various government schemes such as MUDRA, PMEGS, etc.
The Government of Uttar Pradesh also provided financial assistance under the One District One Product scheme. The list of Financial Assistance under One District One Product scheme are :
-Common Facility Centre (CFC) scheme:
This scheme provides an environment for artisans and skilled workers to develop their products. The scheme would also provide support to entrepreneurs planning to start a facility with financial assistance. Financial assistance of up to 90% of the facility set up cost would be provided by the government.
-Market Development Assistance scheme:
This scheme provides financial assistance to artisans and participants to market their products in national and international fairs.
-Financial Assistance scheme(Margin money scheme):
Participants under this scheme would receive a margin on the product cost as a subsidy.
-Skill Development scheme:
Under this scheme, skilled artisans, workers, etc. would be trained through Recognition of Prior Learning (RPL), and the government would also provide recognition and certify the skilled artisans.
The Government of Uttar Pradesh was successful in implementing One District One Product and all the other supporting schemes to support the already existing traditional product market, which contributes to nearly 44% of handicraft exports of India. One District One Product does not just support industries such as handicrafts, engineering goods, carpets, ready-made clothes, leather goods industries etc., but also empowers these industries to provide employment on a large scale.
Taking inspiration from the Government of Uttar Pradesh, the central government has launched the One District One Product scheme across the country. The One District One Product would help preserve and develop traditional crafts. One District One Product also has other benefits like providing employment and increasing income, which would reduce migration. The ODOP scheme would also improve local skills and improve the product quality of traditional products. The traditional crafts and products would also receive better branding and packaging.Embed from Getty Images
The Government of India has recognized the potential of One District One Product and has already started to implement the schemes on the grass-root level. The Government of India has entrusted the company named Invest India for implementation of the program and also to act as a promotion and facilitation agency.