ISSN: 2456–5474 RNI No.  UPBIL/2016/68367 VOL.- IX , ISSUE- IV May  - 2024
Innovation The Research Concept

Rural Renaissance: The ODOP Effect on Socioeconomic Development

Paper Id :  18898   Submission Date :  2024-05-07   Acceptance Date :  2024-05-15   Publication Date :  2024-05-20
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DOI:10.5281/zenodo.11385356
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Tanisha Kumari Singh
Research Scholar
Commerce
University Of Lucknow
Lucknow,U.P., India,
Kranti Singh
Associate Professor
Commerce
Netaji Subhash Chandra Bose Govt. College
Lucknow, U.P., India
Vishal
Research Scholar
Commerce
University of Lucknow
Lucknow, U.P., India
Abstract

Based on strengths of a district and National Priorities, One District One Product (ODOP) is seen as a transformational step forward towards realizing the true potential of a district, a fuel economic growth and generate employment and rural entrepreneurship, taking us to the goal of Aatma Nirbhar Bharat. A programme wherein every district is a country focusing all its energies to expand the outreach of their special product not only to the length and breadth of India but to the entire world.” 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.

A strategic approach to rural development, the One District One Product (ODOP) initiative was started in India and makes use of the unique capabilities and resources of each district. The ODOP program, which was established to encourage entrepreneurship, create jobs, and foster sustainable growth, is centered on highlighting and encouraging certain crafts or products that are native to each area. An overview of the ODOP initiative is given in this document, with a focus on its main characteristics, goals, and implementation strategy. It looks at how the program attempts to reduce regional inequities and promote economic self-reliance by utilizing the traditional talents and resources of local communities. Additionally, it addresses both the potential and the challenges involved in putting ODOP efforts into practice and makes policy recommendations to improve their efficacy in fostering inclusive growth.

Keywords ODOP, RURAL Development, Export Hub, PMFME, Govt. Initiatives, Socioeconomic Development.
Introduction

The great majority of Indians are rural dwellers who make their living from agriculture, allied industries, and other labor-intensive jobs. The majority of artisans work to preserve the cultural traditions of their state, town, and family while making ends meets with pitiful pay in order to continue practicing their trades. However, a new population of these individuals has started to relocate to bigger cities in seeking work and a higher standard of life due to their terrible living conditions and insufficient income to cover their basic necessities. In response to the rising need for employment, the Indian government has implemented a number of programs, one of which is the One District One Product (ODOP) program. Uttar Pradesh has been one of the pioneering states in implementing the ODOP scheme successfully. The state has leveraged its rich cultural heritage and diverse range of traditional crafts and industries to promote local products and generate employment opportunities at the district level. With effective implementation, strategies, government support, and active participation from local communities and stakeholders, Uttar Pradesh has demonstrated how the ODOP initiative can contribute to the socio-economic development of the region.

Objective of study

To assess the One District One Product (ODOP) initiative's necessity in rural India, emphasizing it’s potential to support employment creation, economic diversification, sustainable growth, reduction of poverty, regional development, and cultural heritage restoration

Review of Literature

Yadav, U. S., Tripathi, R., & Tripathi, M. A. (2022). One district one product (ODOP) of Uttar Pradesh: New initiative for developing Global Handicraft Index

The purpose of this study was to give a separate index for the development of handicraft products developing better completion in handicraft industries. Conserving the heritage of all countries handmade tradition, the skill of artisans, making them entrepreneurship to artisans among them.

Misra, R., Kumar, N., & Tewari, S. (2022). Handicrafts, ODOP and Aspirational Districts: Qualitative Observations from the Field Survey

This qualitative research paper talked about handicraft based ODOP products namely wheat stalk paintings of Bahraich and appliqué embroidery of shrawasti of two aspirational districts of eastern Uttar Pradesh. The findings reveal that ODOP products in the districts surveyed have not made any outstanding impact on the beneficiaries.

Wani, S., & Singh, D. (2021). Transformation of rural sector for Atmanirbhar India 

The study examined policy interventions and government schemes that can facilitate the changes such as PMGSY for infrastructure, and the digital India program for digital literacy. Community involvement and public-private partnerships are emphasized as vital for sustainable development.

Analysis

Background of the scheme

ODOP is essentially a 1979-prominent Japanese corporate development idea. It is intended to raise sales and raise the local population's standard of life by marketing a competitive and staple product from a particular region. It has been copied throughout time in other Asian nations as well.

About One District One Product (ODOP)


Source: https://sundayguardianlive.com/wp-content/uploads/2023/01/map.jpg

The Central Government eventually approved it after the Uttar Pradesh government introduced it in January 2018 and saw its success. The Ministry of Food Processing Industries subsequently launched the "One District, One Product (ODOP)" initiative in 2018 with the goals of assisting districts in realizing their full potential, promoting socio cultural and economic development, and generating jobs, particularly in rural regions. The Department of Commerce's Directorate General of Foreign Trade (DGFT) is driving the "Districts as Exports Hub" tactics. It is a federally supported program that the federal government and the states will split 60:40.The ultimate goal of the ODOP project is to actualize the vision of the Honorable Prime Minister of India, which is to promote inclusive regional development throughout all of the nation's districts.

Objectives of ODOP Initiatives:-

i. Formalization, improved exposure to the market, and information access will help a large number of microenterprises.

ii. They will be able to formalize, develop, and become competitive both domestically and internationally thanks to it.

iii. The initiative is anticipated to produce valuable jobs for trained and semi-skilled workers.

iv. The program aims to give women, businesses in the Aspirational Districts, and current micro food processors greater access to financing.

v. Better interaction with organized markets will support local vendors and craftspeople.

vi. Enhanced availability of standard services such as grading, sorting, processing, packing, and storing will be a benefit.

Benefits of the scheme:-

1. Local and community development: By giving in-situ jobs, empowering rural women and youth, and supporting sustainable livelihoods for them, the program stimulates local and community development.

2. Economic self -reliance:  The One District One Product project seeks to support and maintain regional best practices and micro businesses, facilitating the development of a regional ecosystem that is financially self-sufficient. For instance, the ODOP initiative's promotion of native products helps the tribes become self-sustaining.

3. Entrepreneurship and skill development: The program has made it easier for local talent to be trained, reconditioned, and upskilled. This has encouraged regional innovations and localized entrepreneurship. For example: An increase in enterprise in the Bihar district of Darbhanga, which produces makhana.

4.  Local to global approach: The country's exports and foreign exchange profits have increased as a result of the One District One Product project. It contributed to the growth of the "Aatmanirbhar Bharat" movement and MSME focused on agriculture.


https://listerr.in/wp-content/uploads/2022/09/Financial-Support-for-the-ODOP-program-1024x683.png

ODOP – DEH (District Export hub)

This drive is carried out with the ‘Districts as Exports Hub’ initiative by the Directorate General of Foreign Trade (DGFT), Department of Commerce, which provides financial and technical relief to the district level industries so that the MSMEs industries can be helped and they can provide employment opportunities to the indigenous people. One District One Product (ODOP) initiative is operationally merged with ‘Districts as Export Hub’ initiative and is being implemented by Directorate General of Foreign Trade (DGFT), Department of Commerce, with Department for Promotion of Industry and Internal Trade (DPIIT) as a major collaborator. The scheme anticipated reinforcing retroactively backward and forward linkages through provision of common facilities, incubation centres, training, research and development (R&D), branding and marketing.

In order to realize a district's full potential, ODOP-DEH is a seminal initiative that will boost economic growth, create jobs, and encourage rural entrepreneurship. Its goal is to promote balanced regional development throughout all of the nation's districts, strengthening comprehensive socioeconomic growth throughout all regions and allowing MSMEs, farmers, and small businesses to take advantage of export opportunities in foreign markets .Organizational and strategic measures are the suggested forms of involvement under ODOP-DEH. Goods and services that have the potential to be exported have been identified under ODOP-DEH in 733 districts nationwide. These districts include agricultural and toy clusters as well as GI goods. Twelve districts have clusters related to the production of toys recognized.
Products that have been found are promising for both local and international markets, and they are being pushed in a clump strategy by means of convergence of resources.

The Ministry of Food Processing Industries has determined 707 districts from 35 States and Union Territories to be part of the Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME). The Director-General of Foreign Trade (DGFT) has combined ODOP with the "Districts as Export Hub" project, in which the Department for Promotion of Industry and Internal Trade (DPIIT) is a prominent contributor.

ODOP under PMFME:-

PMFME ((Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme) launched on 29th June 2020, is a significant initiative by the govt. of India to empower the local food processing enterprises and promote self reliance. It is currently being enforced  on 35 states and UTS. (PMFME) plan, which helps develop the infrastructure and marketing of these One District One Focus Produce (ODOFP)  offers incentives to two lakh small businesses with credit-linked subsidy during a five-year period from 2020-21 to 2024-25 with an investment of Rs. 10,000 crores. Under the Districts as Export Hub project, the DGFT has also chosen 106 items from 103 districts, including GI products and clusters associated with agriculture and toys. States are able to detect their product clusters, market connections, and collaborator through the State Level Upgradation Plan (SLUP). The Ministry of Food Processing Industries (MoFPI) provides financial support  under Centrally Sponsored Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PM FME Scheme) for One District One Focus Product. PMFME provides financial, technical and business support for enhancement of existing micro food processing enterprises etc. The scheme adopts One District One Product (ODOP) approach to reap the benefits of scale in terms of procurement of inputs, availing common services and marketing of products.

Impact of ODOP on economy of Uttar Pradesh:-

Uttar Pradesh, a region in India once labeled backward and impoverished, now on the cusp of becoming a Trillion-dollar economy. The region’s unique products, including the aromatic Kala Namak Rice, later known as Budhha Rice, elaborately woven silks, stone crafts were wilting into oblivion due to lack of market access. Enter the One District One Product (ODOP) scheme, a landmark program that took entrepreneurship into rural heartlands. It imagined transforming each state district into world-class hubs with the entire value chain, from production, sales, and marketing to export capacity for a district’s approach shifted the focus from the region’s challenges to its diverse strengths.

The ODOP is gaining strength with continuous emphasis to open up new market opportunities for local artisans. During the G20 events organized in India, visiting global leaders were gifted ODOP products. There was even a crafts bazaar next to the main event pavilion for G20 representatives to indulge in retail therapy and enhance the market potential of each product represented under the ODOP. The results are stunning in Uttar Pradesh alone the ODOP has contributed a staggering $30 billion to the economy.

New reports of government of Uttar Pradesh show significant contribution in the sale of ODOP in December, 2023. Through the Flipkart portal, more than 2 crore ODOP products were sold in the year 2022-23 and leather products of Agra, Locks from Aligarh and sports from Meerut are top trending ODOP on Flipkart. Government has joined hands with Flipkart for ODOP products in 2020.

Economy of Uttar Pradesh contributes 8.3% in GDP. ODOP revenue has increased. ODOP exports now stand at 2 lakh crore. According to government statistics, the state’s overall ODOP products increased in value from 58000 crore in FY 2017-18 to 96000 crore in FY 2021-22. In terms of total exports from Uttar Pradesh, it is projected ODOP items account for about 62% of those exports.

ODOP in different sectors:

A type of intellectual property right known as Geographical Indication (GI) designates things as coming from a particular place when the product's reputation, features, or other features are primarily linked to that locality. By utilizing the distinctive features of regional products, this recognition serves to foster regional economic growth and guarantees that items are shielded from unauthorized usage. Within the framework of India's One District One Product (ODOP) program, Geographical Indication is essential for promoting the unique qualities and history of goods connected to specific districts. These products become more marketable, acquire legal protection, and help preserve traditional workmanship and cultural history by receiving GI tags. Geographical Indication and ODOP work well together to highlight the value of utilizing local resources, knowledge etc.

Sector Wise Product Summary

Agriculture

401

Food Processing

122

Handicraft

221

Handloom

102

Textile

102

Manufacturing

188

Marine

33

Dairy

8

Others

33

Grand Total

1210

Source: One District One Product (ODOP) Programme (investindia.gov.in)

Most unique and most common Product

i. As per the list Naga King Chili appears to be the most unique product from Nagalandas Peren was the only district in India selected for it production.

ii.  There are products in UP that cannot be found anywhere else. Products like

1. The ancient and nutritious 'Kala namak' rice

2. The rare technique of wheat-stalk craft, 

3. The famous chikankari and zari-zardozi work garments

4. The horn and bone work that uses the remains of dead animals rather than living ones, making it a nature-friendly replacement for ivory.

Many of the products are GI-tagged. They are authorized to belong to the region in Uttar Pradesh. Many of these were also dying colony traditions that are being revived through modernization and

ODOP for agricultural sector

India is among the top exporters of agricultural goods internationally. India's agricultural exports are valued differently every year depending on a number of variables, notably government policy, levels of production, and global demand. The Agricultural and Processed Food Products Export Development Authority Act, 1985, created the Agricultural and Processed Food Products Export Development Authority (APEDA), an independent body under the control of the Indian government. The Ministry of Commerce and Industry, Government of India, has administrative supervision for APEDA.

To boost unique agricultural products under ODOP programme, the APEDA has initiated pilots in seven districts across five providing necessary infrastructure and financial assistance through convergence mode. The districts include Lucknow (mango) in Uttar Pradesh; Nagpur (mandarin orange), Nasik (onion), Sangli (grapes) in Maharashtra, Krishna (mango) in Andhra Pradesh, Kumuram Bheem (millets) in Telangana and Dharamapuri (millets) in Tamil Nadu.

ODOP for Handicraft Sector

Handicraft is one of the most important sectors in the Indian economy. It is a major source of employment, second only to agriculture, and gives urban as well as rural residents of the nation an essential source of income. India produces various handicrafts like woodware, art-metal wares, hand oriented textiles, embroidered goods, jewellary, sculptures pottery etc. This industry is dominated by female artisans with over 56 % of the total artisans. Exports of handicrafts from India stood at US$ 1.68 billion in FY23. A "Lota Shop" has been introduced by the Ministry of Textiles at the National Museum of Crafts in New Delhi . India's Central Cottage Industries Corporation (CCIC), sometimes referred to as the Central Cottage Industries Emporium, opened the store. It features handcrafted textiles, antiques, mementos, and handicrafts modeled by traditional Indian handicrafts.

One District One Product (ODOP) and Deendayal Antyodaya Yojna - National Rural Livelihoods Mission (DAY-NRLM) joined hands to launch “ODOP wall” to promote indigenous crafts and artisans of rural SHGs women.This initiative not only celebrates India’s artistic diversity but also amplifies the voice of rural artisans and women entrepreneurs.

Govt. initiatives to boost Handicraft sector are:-

i. Ambedkar Hatship Vikash Yojna

ii. Mega Cluster Scheme

iii. Marketing Support And Services Scheme

iv. National Handicraft Development Programme

v. Export Promotion Council for Handicrafts

Soft toys- Jhansi

The Indian toy industry is well known around the world and soft toys comprise a major part of that market. Soft toys in the Jhansi district in Uttar Pradesh (UP) were selected as an ODOP product. As per the ODOP Coffee Table Book, published by the state of UP, more than 50 soft toy manufacturers operate in Jhansi boosting job creation. These soft toys are supplied to major commercial centres and exported. Sons Warsi Toys, a soft toy manufacturer in Jhansi, used to manufacture three to six toys daily. After receiving financial support under the ODOP initiative, the firm scaled its manufacturing, and now employs 18-20 people. Sons Warsi can manufacture 50-80 toys daily and its monthly sales rose to around Rs. 1.5 lakh (US$ 2,007)

ODOP for Horticulture

Shopian, Jammu and Kashmir - Quality Apples

In the icy embrace of Kashmir, Shopian's apples sparkle with promise. The ability of ODOP to weave economic self-reliance, strand by strand, is like magic. The Sub-Mission on Agricultural Mechanization (SMAM), Prime Minister's Development Package (PMDP), and Mission for Integrated Development of Horticulture (MIDH) provide funding for pack sheds and irrigation arteries, which support productivity and foster dreams. The outcome is a delicious 20% output spike that highlights the area's potential for economic expansion.

Uttarkashi, Uttarakhand - Red Rice Cultivation

Uttarkashi is highlighting the transformational potential of self-reliance among the beautiful Himalayas. Through fifteen customized training sessions, over 700 farmers, NGOs, and the local government were equipped with organic agricultural techniques. With over a thousand recipients receiving essential gear, red rice output increased by 25%. Through sustainable agricultural methods, this Aatmanirbhar Bharat success story not only strengthens Uttarakhand's economy but also its future.


Araku Valley, Andhra Pradesh - Exquisite Coffee Cultivation

Coffee from Araku Valley, tucked away in India's Eastern Ghats, enthralls with its rich scent and zesty taste. This community symphony is the coffee miracle. This highly valued beverage is cultivated by about 1,50,000 tribal households in collaboration with the Integrated Tribal Development Agency (ITDA) and the Coffee Board. With the help of loans surpassing Rs. 1 crore from Girijan Co-Operative Corporation (GCC), they have increased output by 20% while respecting traditional ways. Aatmanirbhar Bharat's anthem is sung by the community chorus in Araku Valley coffee, which is more than simply a cup.

Burhanpur, Madhya Pradesh - Premium-Quality Bananas

Burhanpur's premium bananas are a delectable success story that emanates from the heart of Madhya Pradesh. A 15% increase in output is the outcome of ODOP's embrace of innovation and farmer support. Today, diversity thrives, creating amazing environmentally beneficial products out of banana fibers. Burhanpur's economic peel has been exhibited by participation in international events, such as the worldwide Investors Summit 2023, enhancing its appeal on a worldwide scale.

The govt of India announced the six brands of Horticulture products under the ODOP scheme:

1. Amrit Phal- amla juice from Haryana

2. Cori Gold- Coriander Powder from Kota, Rajasthan

3. Kashmiri Mantra- a spices from Jammu & Kashmir

4. Madhu Manta- Honey from Saharanpur, Uttar Pradesh

5. Somdana-  Milet from Thane, Maharashta

6. Whole Wheat Cookies of Dilli Bakes

ODOP for Food sector

An effective tactic to stimulate economic growth and strengthen local communities is the food industry's One District One Product (ODOP) program, which leverages each district's own agricultural, culinary, and cultural legacy. A perishable agricultural product, a product based on cereal, or a food product that is commonly produced in the district and its related industries might be the ODOP product. Mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickled vegetables, millet-based goods, fishery, poultry, meat, and animal feed are a few examples of such items.

Ministry of Food Processing Industries (MoFPI), Govt. of India in collaboration with National Agricultural Cooperative Marketing Federation of India (NAFED) launched three ODOP brands under the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) scheme.

Some of the ODOP brands launched under PMFME scheme:

Brand

District/State

Product

Cori Gold

Kota, Rajasthan

Coriander Powder

Makahana King

Darbhanga

Plain and Chatpata Makhana

Dilli Bakes

Delhi

Cookies and Rusk

Amrit Phal

Gurgaon, Haryana

Amla Juice

Madhumantra

Saharanpur , Uttar Pradesh

Multiflora Honey

Somdana

Thane, Maharashta

Millet Flour

Kashmiri Mantra

Kulgam, Jammu and Kashmir

Red Chilli Powder

Of these seven ODOP products, Dilli Bakes was introduced in New Delhi in October 2021, while Makhana King premiered in Patna in January 2022. In January 2022, the rest of the five brands were also introduced in New Delhi. Thus, three ODOP brands and five goods—Madhurmithas, Anaras, Pind Se, and two items, Masala Paste and Lemon Honey—under the newly created names Kashmiri Mantra and Madhumantra, respectively, have been successfully introduced, along with the seven ODOP brands and nine products.According to MoFPI, two new products have also been introduced under the brands Kashmiri Mantra and Madhumantra under the ODOP scheme from the district Kulgam, Jammu and Kashmir and district Saharanpur, Uttar Pradesh respectively.

Notwithstanding its potential for expansion, India's food export sector confronts a number of difficulties. These include problems with quality control, logistics, adhering to international norms and laws, infrastructure constraints, and fierce rivalry from other exporting nations. The market for processed food startups are booming in the nation. An increasing number of businesses are developing creative business models, and some of them are succeeding. Grofers, Licious, and Rebel Foods, for instance, were among those included in the unicorn list from the previous year.

Conclusion

In conclusion, India's rural renaissance and socioeconomic progress have been aided by the One District One Product (ODOP) program. By emphasizing the distinctive goods and crafts made in each region, ODOP has empowered local communities, stimulated inclusive growth, and rejuvenated rural economies. The application of ODOP has produced a number of advantageous results. First of all, it has promoted creativity and entrepreneurship at the community level by giving nearby agricultural producers, artists, and business owners a platform to display their abilities. ODOP has stimulated economic expansion and contributed to the upkeep of cultural heritage by supporting indigenous goods and traditional businesses.

Additionally, ODOP has helped create jobs and revenue in rural regions, boosting diversification of livelihoods and lowering reliance on agriculture. Local producers now have more access to domestic and international markets thanks to the focus on value addition and market connections, which raises their earning potential and level of life.Additionally, ODOP has promoted organizational assistance and the development of infrastructure in rural regions. This includes funding for agro-processing facilities, skill-development programs, and marketing platforms. The aforementioned measures have improved local products' competitiveness in the international market and fortified the supply chain. Nevertheless, there are still obstacles in the way of ODOP's complete realization. To keep rural development moving forward, problems which include poor infrastructure, financial access, quality control, and obstacles to market access must be resolved. Furthermore, for ODOP to be applied effectively, there has to be more convergence between different stakeholders, such as government agencies, businesses, and civil society groups.

In summary, even though ODOP has made great progress toward rural revitalization and socioeconomic development in India, much more has to be done. To truly realize the goal of equitable and environmentally friendly growth through ODOP, all stakeholders must maintain their commitment, innovate, and make focused interventions.

References

1. Yadav, U. S., Tripathi, R., & Tripathi, M. A. (2022). One district one product (ODOP) of Uttar Pradesh: New initiative for developing Global Handicraft Index. Int. J. Adv. Multidiscip. Res9(2), 1-23.

2. Misra, R., Kumar, N., & Tewari, S. (2022). Handicrafts, ODOP and Aspirational Districts: Qualitative Observations from the Field Survey. Productivity63(2).

3. Wani, S., & Singh, D. (2021). Transformation of rural sector for Atmanirbhar India. Atmanrbhar Bharat: A Vibrant and Strong India (eds. S. Gurumurthy and Arvind Gupta, Vivekananda International Foundation., New Delhi, India, Aryan Books International, New Delhi, 279-305.

4. Schumann, F. (2016). One village one product (OVOP) strategy and workforce development: lessons for small islands and rural communities. Pacific Asia Inquiry7(1), 89-105.

5. Aayog, N. I. T. I. DEEP DIVE, Insights from Champions of Change, The Aspirational Districts Dashboard.(2018). NITI Aayog: New Delhi.

Webliography:-

One District One Product (ODOP)| National Portal of India)

Press Information Bureau (pib.gov.in)

ODOP: Handicraft Sector (drishtiias.com)

pib.gov.in/PressReleaseIframePage.aspx?PRID=1948019

One District One Product (ODOP) Programme (investindia.gov.in)

One District One Focus Product Scheme (pib.gov.in)