The government has launched One District One Product Scheme to promote MSMEs in India. MSME sector contributes considerably to the country’s economy. The central and state government has launched various MSME schemes previously to empower them.
‘One District, One Product,’ creates and increases export potential in each district. Covid adversely impacted small and medium-sized businesses. They had faced challenges related to manpower, raw materials, logistics, and liquidity during the Covid, though more than 90 percent of them had worked. Dr. Srikar K Reddy, Commerce Joint Secretary, says they remain the largest employers and contribute enormously to GDP.
The government also offers business loans to aid SMEs financially. Additionally, they are also helping women entrepreneurs with their different schemes. One District One Product (ODOP) is one such scheme which is launched to support MSMEs.
In the scheme, the vendors receive common inputs, obtain common services, and market their products in one district. A single district is responsible for one product (ODOP).
The Development of the Value Chain and Alignment of the Support Infrastructure will be provided by ODOP for the scheme. ODOP products are sometimes found in more than one cluster in a district. One State may have multiple adjacent districts producing ODOP products.
What Is One District One Product Scheme?
There are some businesses in all districts in Uttar Pradesh, but they cannot get much prominence and value. To overcome this situation, the One District One Product scheme is launched in Uttar Pradesh. Uttar Pradesh offers a wide array of products that are found nowhere.
Such as wheat-stalk craft, chikankari, glassware, etc. All such products are manufactured in villages which are not very popular. The scheme is initiated to help these local and specialized products and crafts.
The scheme will promote the traditional industries with their respective districts. It will also help in creating jobs and boosting the local economy.
State officials will identify food products in each district, keeping in mind that these are perishable items. The baseline study must be conducted by the state government. Products of ODOP can be perishable crops, cereals, or food commonly produced by a district. Mangoes, potatoes, litchis, tomatoes, tapioca, kinnu, bhujias, pethas, papads, and pickles are some examples of such products, in addition to fisheries, poultry, and meats.
A range of products including waste to wealth may also qualify for support through the Scheme. A few examples of Indian herbal edible items are honey, small forest products, and turmeric, amla, haldi, etc.
In order to support agricultural production, efforts should be made to reduce wastage, assay correctly, store the products and market them.
The micro-units producing ODOP products would be given preference for capital investment support. It is also intended to support existing units producing other products. Those involved in ODOP products are more likely to be supported when it comes to capital investment by groups.
It would only be possible to support other groups in such districts with the technical, financial, and entrepreneurial capacity to process these products already. All new units, regardless of whether they are individual or group, should be supported by ODOP products only.
Marketing and branding support for ODOP products would only be provided. State and regional support for marketing and branding could include products of districts that do not have those products.
Agriculture crops will be supported under the Agriculture Export Policy with a cluster approach, and the Ministry of Agriculture will work to develop specific agriproducts in districts with comparative advantages. A common facility and support services would be easier to provide through the ODOP approach.
Objectives Of The Scheme
The following are the objectives of One District One Product scheme:
The scheme will help in preserving and developing local skills and craft. It will also help in its promotion.
To increase the income of the MSME owners and create more job opportunities.
The scheme aims at the improvement in the product quality and skill development.
To resolve the issue of economic difference and regional imbalance.
If the concept works well in Uttar Pradesh, the government aims to implement it at the national and international level.
Important Points Of ODOP
The businesses will be encouraged to use new technology, and the artisans will be provided with training to compete with other products in the market.
Employment will be encouraged with the help of the scheme. It is estimated that 5 lakh people will be employed in the next five years.
MSMEs will get financial support. They will get MSME loan at very low interest rates.
The government is working tirelessly to promote and encourage the MSME sector in India. The One District One Product scheme is one such example. If you too have a small business and you wish to increase it, but lack of funds stops you, then you can avail an MSME loan from ZipLoan.
It is an RBI registered NBFC that offers business loans at minimal documentation and disburses the loan amount in just 3 days.
Frequently Asked Questions
The objective of ODOP is to convert each district of the country into an export hub by identifying products with export potential in the district.
One District One Product (ODOP) 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.
One District One Product (ODOP) scheme was initiated in 2018 with a budget of Rs. 25,000 crores, by the Government of Uttar Pradesh to revive the indigenous art form by providing financial and marketing support.