One District One Product (ODOP)

How is this scheme building an Atmanirbhar economy?
One District One Product (ODOP)

To strengthen India’s rapid expansion of economy, it is important to devise targeted measures that address every aspect of economic growth, including both centralised mega schemes and grassroot support. The ODOP scheme—aimed to power balanced regional development across districts—is a welcome step in this direction, which is catalysing India’s manufacturing capacity significantly. By focusing on identification, promotion and branding of one product, this programme aims to capitalise on the unique strengths and resources of a district, further stimulating local economies and creating progressive livelihoods. Through this initiative, every district is being nurtured as an exports hub by scaling manufacturing, backing homegrown enterprises and attracting potential foreign buyers.

Currently, under this initiative, the Government of India has identified a total of 1,102 products from 761 districts across the country.1

one-district-one-product-infographic

So, how has ODOP performed so far and how is it helping exports? Here are some key updates:

    1. According to estimates, ODOP exports from Uttar Pradesh (UP) soared to INR2 trillion, which is a significant increase as compared to the total exports of INR86,000 crore in 2017.2

    2. UP has also become the second-largest state in terms of GDP contribution with a total share of 9.2 per cent.Recently, the state—which has about 96 lakh MSME units—also capitalised on the International Trade Show, attracting over 500 global buyers for the first time.4

    3. Similarly, in 2023, Punjab’s Bhatinda district witnessed a 37 per cent increase in honey production to 1,100 tonnes.5

    4. Karnataka is planning to expand this programme as an exhibition centre by utilising the Centre’s interest-free loan of INR193 crore under ODOP.6

    As India sets its sights on becoming a USD7 trillion economy by 2030,7 along with achieving the ambitious target of USD1 trillion in merchandise exports,8 the ODOP initiative will play a critical role. By harnessing local resources and expertise, the scheme will help continue enhancing the country’s resource efficiency, creating significant employment opportunities and uplifting the socioeconomic landscape of every district in the country.

    [1] One District One Product (ODOP), National Portal of India, accessed on 24 May 2024
    [2] ODOP exports from UP have soared to INR2 lakh crore, Invest UP, January 2024, accessed on 24 May 2024
    [3] With 9.2 per cent share in India’s GDP, UP second-largest economy: Report, Invest UP, December 2023, accessed on 24 May 2024
    [4] Over 500 foreign buyers register on the third day of UP International Trade Show, Invest UP, 24 September 2023, accessed on 24 May 2024
    [5] One District One Product push: Bathinda farmers reap sweet dividends as honey production sees a 37 per cent jump, MSN, 23 January 2024, accessed on 24 May 2024
    [6] Unity Mall to promote 'One District, One Product' to come up in Mysuru, Deccan Herald, 9 February 2024, accessed on 24 May 2024
    [7] India to become a USD7 trillion economy by 2030: Finance ministry report, Hindustan Times, 29 January 2024, accessed on 24 May 2024
    [8] India’s exports: What worked and how can we achieve the USD1 trillion target?, KPMG in India, 28 May 2023, accessed on 24 May 2024

    Author

    Neeraj Bansal

    Partner and Head India Global

    KPMG in India


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