GLOBAL SELLING BLOG

What is the One District One Product (ODOP) initiative and how does it help exporters?

Learn about the One District One Product (ODOP) scheme, its eligibility, benefits, and objective in this blog.

What is the One District One Product (ODOP) scheme

The One District One Product (ODOP) program is an initiative of the Ministry of Food Processing Industries that is designed to facilitate balanced socio-economic development throughout India. The ODOP initiative aims to choose, brand, and promote one product from each district of the country. Aside from items designated under Districts as Export Hubs (DEH) and GI-tagged products, all products under the ODOP project are chosen by states and Union Territories (UTs) based on the unique attributes of their local ecosystems.¹

What is the One District One Product initiative?

The ODOP initiative was adopted by the Central Government to achieve the vision of ‘Atmanirbhar Bharat’ by fostering balanced regional development throughout the country. The initiative seeks to identify and promote a unique indigenous product from each district to boost the production, marketing, and export potential of Indian districts. By providing necessary support through skill development, financial assistance, and market access, the initiative aims to boost local businesses, generate employment opportunities, and uplift rural economies.²

The ODOP initiative has gained significant momentum since its launch. As of 2023, 1102 products from 761 districts in India have been identified under this initiative.³The initiative is expected to contribute to India’s export growth, and preserve and promote the country’s cultural diversity.
Examples of ODOP products include perishable agricultural produce, products based on cereals, and common food items produced in a district and its related sectors. The scheme also extends support to other traditional and innovative items, such as honey, small-scale forest goods in tribal regions, and traditional Indian handicrafts, textiles, and handlooms.⁴

Objectives of ODOP initiative

The ODOP initiative aims to realize the Government of India’s vision of promoting equitable regional development across all districts in India. The key objectives of the ODOP initiative are as follows:
• To identify, brand, and market one product from every district in the nation.
• To facilitate comprehensive socio-economic development throughout all areas.
• To attract buyers and investors in order to increase exports and manufacturing.
• To generate employment in the district.
• To establish an environment that fosters innovation and technology use at the district level, empowering local artisans and small businesses to compete in domestic and international markets.⁵

Sectors covered under One District One Product initiative

The following sectors are covered:

Agriculture

Almost 45% of products under the ODOP initiative are agriculture and agro-based.

Food processing

Key areas of growth include fruit and vegetable processing, meat, poultry, dairy, seafood, packaged/convenience food, oils, beverages, and grain processing.

Manufacturing and minerals

India is growing to become a major manufacturing hub in Asia, with gems and jewellery being one of the key areas of focus.

Handicrafts

Due to its diverse cultural heritage, India has a rich variety of handicraft jewellery, décor, and utility items that are made by skilled craftsmen and artisans across the country.

Textile and handloom

With its links to agriculture and Indian culture and tradition, the Indian textile and handloom industry is one of the largest in the world with a wide and versatile product range.⁶

Benefits available under ODOP initiative

The ODOP initiative offers several benefits to empower Indian districts and transform them into manufacturing and export hubs:

• Existing micro-businesses will receive support through capital investment, with a preference given to those producing ODOP products. Support for new units will be limited to ODOP products only.
• Infrastructure support is offered for branding and marketing.
• A credit-linked capital subsidy of up to Rs. 10 lakh (US$ 13,379.7) or 35% of the eligible project cost is available under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme with the ODOP approach. The beneficiary needs to contribute at least 10% of the total sum, with the remaining balance as a bank loan.
• Groups like Producer Cooperatives, Self-Help Groups (SHGs), and others receive a credit-linked grant of 35% to aid their operations, including sorting, grading, storing, packing, processing, and related tasks.
• SHG members in food processing can receive seed capital of INR 40,000 each, intended for working capital and the purchase of small tools.
• Branding and marketing support is extended to SHGs and cooperatives through grants, covering up to 50% of the total expenditure for the ODOP product at the state or regional level.
• Training is provided with a focus on entrepreneurial growth, operations, marketing, accounting, FSSAI norms, GST registration, Udyog Aadhaar, and Geographical Indication (GI) registration.⁷

ODOP initiative eligibility

The eligibility criteria for ODOP are as follows:
● The candidate must be an Indian citizen above 18 years of age. There is no compulsion on education qualification.
● The candidate should be involved in producing the products listed district-wise.
● They should not be a defaulter of any nationalized bank/ financial institution/ government institution.
● They should not have availed of the benefits offered under the Pradhan Mantri Rozgar Yojana, the Prime Minister's Employment Generation Program, the Chief Minister's Employment Scheme or any other Central or State Government self-employment scheme.⁸

Documents required for One District One Product application

Candidates who wish to avail of the ODOP initiative need to provide the following documents during the application process:
• Detailed project report.
• ID proof such as Driver's License, Aadhaar card, PAN card, and residence proof, among others.
• Company details and documentation.
• Documentation attesting business ownership.
• The company's or partnership's memorandum and articles of association.
• Recent income tax filings and the promoters' and guarantors' assets and liabilities statement.⁹The One District One Product (ODOP) initiative has the potential to unlock a district's true economic capacity. By promoting product specialization, fostering MSME growth, and creating employment opportunities, this initiative can lead to comprehensive district development and transform Indian districts into export hubs.

To facilitate export growth, small businesses aspiring to export ODOP products can leverage e-commerce exports, and bypass the significant capital investment and infrastructural complexities associated with traditional export methods.

Amazon Global Selling: Easy e-commerce exports and hassle-free shipping

If you are a business owner and you want to sell your products to the world, Amazon Global Selling enables you to list and sell ‘Made in India’ products on 18 Amazon global marketplaces. As an e-commerce exports program, Amazon Global Selling provides support and guidance at every step of your export journey, connecting you to Amazon’s Service Provider Network for tailored compliance, payments, and logistics support.

Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for Fulfillment by Amazon (FBA) and outsource order fulfillment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.

Visit Exports Compliance Dashboard to meet your documentation requirements

Frequently Asked Questions

What is the age limit criteria for ODOP?

Applications need to be above 18 years of age to be eligible for ODOP.¹⁰

Can I submit an ODOP application online?

Yes, ODOP applications can be submitted online.¹¹

What documents are required for ODOP application?

ID of the applicant, company details, business ownership documents, and income tax filings are some of the important documents required for ODOP application.¹²

Published on February 25, 2024.

Sources:
1. https://www.india.gov.in/spotlight/one-district-one-product-odop
2. https://www.ibef.org/blogs/india-s-one-district-one-product-programme
3. https://www.india.gov.in/spotlight/one-district-one-product-odop
4. https://mofpi.gov.in/pmfme/one-district-one-product
5. https://www.investindia.gov.in/one-district-one-product
6. https://static.investindia.gov.in/s3fs-public/2023-09/II-005_ODOP%20Brochure_R4.pdf
7. https://www.ibef.org/blogs/india-s-one-district-one-product-programme
8. https://www.indiafilings.com/learn/one-district-one-product/
9. https://www.indiafilings.com/learn/one-district-one-product/
10. https://www.indiafilings.com/learn/one-district-one-product/
11. https://www.indiafilings.com/learn/one-district-one-product/
12. https://www.indiafilings.com/learn/one-district-one-product/

What is Duty Entitlement Passbook (DEPB) Scheme for exporters?

What is the Export Promotion Capital Goods Scheme (EPCG)?