Centre to Release Fresh Guidelines to Boost First-Time Exporters and ODOP: Piyush Goyal

Commerce and Industry Minister Piyush Goyal, speaking on Monday, revealed that the Centre will soon issue fresh guidelines focused on expanding new markets, introducing new products, and encouraging first-time exporters. He emphasized the need for cooperation between the Ministry and districts to support these goals through the One District One Product (ODOP) initiative.

“The Ministry and districts can work together to promote One District One Product (ODOP) items in newer markets and support first-time exporters,” Commerce and Industry Minister Piyush Goyal stated.

New Markets, New Products, New Exporters: A National Focus

India’s Export Story Rooted in Local Excellence

Goyal emphasized that 773 districts across India have played a crucial role in the country's economic rise, calling India:

“an oasis in a desert in a tumultuous world and... the fastest-growing large economy in the world today.”

He reiterated that India is on track to become the third-largest global economy by 2027 and stressed that Indian products — from Wayanad’s coffee to Ratnagiri mangoes and Pulwama’s saffron — represent the vast export potential of local goods.

ODOP: A Uniquely Indian Initiative with Global Aspirations

H3: Unlocking Regional Potential Through Unique Products

Describing One District One Product as a “unique initiative, unmatched by any other country,” Goyal said:

“Each district brings a different kind of legacy.”

He noted that in some cases, two products from a district may need recognition under ODOP, as India’s local offerings are now gaining global exposure.

Bihar Sets an Example in ODOP Implementation

Full Product Coverage Achieved in All 38 Districts

Goyal revealed that 64 out of 87 ODOP-identified products fall under the Industrial Investment Promotion Policy, and notably:

“All 38 districts of Bihar have achieved 100 per cent coverage of products under ODOP.”

He added that Bihar has been designated Category A under this initiative and has fully integrated ODOP into its economic and industrial policy frameworks.

Call to Action: ODOP as a Tool for District Prosperity

Goyal urged stakeholders to actively support the initiative:

“Take a pledge to make ODOP a driving force for prosperity in their districts through their unique products.”

This emphasis signals a strategic shift in India’s export policy, aligning grassroots production with global demand.

What is One District One Product (ODOP)?

The One District One Product (ODOP) initiative is a transformative program in India aimed at fostering balanced regional development by identifying, branding, and promoting a unique product from each district across the country. The core idea is to leverage the specific strengths and traditional expertise of each district to boost local economies, generate employment, and enhance the market visibility of indigenous goods.

Origin and Evolution of ODOP

The concept of "One District One Product" is inspired by similar successful models globally, such as Japan's "One Village One Product (OVOP)" movement, which originated in 1979.

In India, the ODOP journey began in Uttar Pradesh (UP). The Government of Uttar Pradesh officially launched the ODOP Programme on January 24, 2018, on the occasion of Uttar Pradesh Divas. It was a comprehensive strategy to encourage the domestic production and sale of specialized products and crafts unique to each of UP's 75 districts.

Following the success and positive impact observed in Uttar Pradesh, the Government of India adopted the ODOP initiative as a national program. It is now a key component of the Prime Minister's vision for 'Atmanirbhar Bharat' (Self-Reliant India) and 'Vocal for Local'. The national ODOP initiative is operationally merged with the 'Districts as Export Hub (DEH)' initiative of the Directorate General of Foreign Trade (DGFT), Department of Commerce.

How Does ODOP Work?

The ODOP scheme operates on a multi-pronged approach to support the identified products and their associated industries:

Product Identification: Each district identifies a unique product that has potential for growth, innovation, and market expansion. This selection is typically based on the district's historical, cultural, and economic significance, often including products traditionally famous for their production or those with Geographical Indication (GI) tags. The identified products span various sectors, including:

• Agriculture and Agro-based products (e.g., specific fruits, vegetables, spices, processed foods)

• Food Processing

• Handicrafts

• Textiles and Handlooms

• Manufacturing and Minerals

1. Support Schemes and Interventions: The initiative provides comprehensive support through various schemes and programs:

   • Financial Assistance (Margin Money Scheme): Provides subsidized loans and financial aid to artisans, workers, and entrepreneurs for establishing or expanding their units. For instance, enterprises with a project cost up to ₹25 lakhs can receive 25% of the project cost (up to ₹6.25 lakhs) as margin money subsidy.
   • Skill Development & Toolkit Distribution Scheme: Offers training (e.g., 10-day training for unskilled artisans, Recognition of Prior Learning (RPL) for skilled artisans) to enhance skills, introduce modern techniques, and improve product quality. Trainees often receive a stipend and free advanced toolkits.
   • Marketing Development Assistance (MDA) Scheme: Provides financial support for participation in national and international fairs, exhibitions, and buyer-seller meets to improve market outreach and branding. This includes assistance for stall setup and product transportation.
   • Common Facility Centres (CFCs): Establishes shared infrastructure facilities such as design labs, testing labs, raw material banks, and research & development centers to support artisans and small units in improving quality, production, and efficiency.
   • Branding and E-commerce Promotion: Promotes the branding of ODOP products and facilitates their onboarding onto e-commerce platforms (like Amazon, Flipkart, Government e-Marketplace - GeM) to expand their reach to domestic and international markets.

   • Infrastructure Development: Supports the development of clusters and related infrastructure for the identified products.

2. Institutional Mechanism: State Export Promotion Committees (SEPCs) and District Export Promotion Committees (DEPCs) have been constituted in States/UTs to provide support for export promotion and address bottlenecks. District Export Action Plans are prepared for identified products and services for overseas markets.

Objectives of the ODOP Programme

The primary objectives of the ODOP initiative are:

• Promote Local Crafts and Skills: Preserve and develop local crafts, traditional skills, and promote regional art forms.
• Generate Employment: Create direct and indirect employment opportunities at the district level, particularly for youth, artisans, and those in the unorganized sector. This also helps in preventing rural-urban migration.
• Boost Local Economy: Stimulate economic growth by encouraging product specialization, attracting investment, and fostering entrepreneurship.
• Improve Product Quality: Enhance product quality, standardize processes, and encourage innovation to meet modern market demands.
• Increase Exports: Promote the selected products at national and international levels, turning districts into manufacturing and export hubs.
• Achieve Balanced Regional Development: Foster holistic socio-economic growth across all regions of the country by leveraging unique district strengths.
• Financial Inclusion: Improve access to finance for artisans and small businesses through various schemes and partnerships with financial institutions.
• "Vocal for Local" and "Atmanirbhar Bharat": Contribute to the national vision by strengthening domestic industries and making India self-reliant.

Impact and Benefits of ODOP

The ODOP scheme has shown significant positive impacts:

• Revitalization of Traditional Crafts: Many traditional crafts and industries that were on the verge of extinction due to competition or lack of patronage have been revived (e.g., Lucknow's Chikankari, Moradabad's Brassware).

• Increased Market Access and Exports: Facilitated participation in trade fairs and e-commerce platforms has expanded the market reach of ODOP products. For instance, in Uttar Pradesh, the scheme has reportedly boosted exports significantly, with products being showcased and even gifted to world leaders at international forums like G20 summits.
• Employment Generation: Directly and indirectly created numerous jobs in manufacturing, processing, marketing, and ancillary industries (packaging, transport). It has empowered many women artisans, increasing female workforce participation.
• Entrepreneurship Development: Promoted self-employment and fostered a startup culture, especially among youth, by providing training and financial assistance.

• Infrastructure Development: Establishment of Common Facility Centres (CFCs) has provided crucial support for quality enhancement and scalability.

• Quality Improvement: Focus on skill development, design innovation, and quality standardization has led to better products that are more competitive in both domestic and international markets.
• Reduced Regional Imbalances: By focusing on district-specific strengths, the scheme helps in addressing economic disparities and promoting inclusive growth across different regions.

Examples of Successful ODOP Products in India

Many districts across India have identified and successfully promoted their unique products under the ODOP scheme. Some prominent examples include:

• Uttar Pradesh:

  • Lucknow: Chikankari & Zari-Zardozi (embroidery)

  • Varanasi: Banarasi Silk Sarees

  • Moradabad: Metal Craft (Brassware)
  • Firozabad: Glassware
  • Kannauj: Perfume (Attar)
  • Siddharthnagar: Kala Namak Rice
  • Agra: Leather Products

• Jammu & Kashmir: Saffron (Pulwama), Willow Wicker (Ganderbal)

• Maharashtra: Alphonso Mangoes (Ratnagiri), Nagpur Oranges (Nagpur), Grapes/Raisins (Nashik)

• Andhra Pradesh: Chillies (Guntur), Bobilli Veena (Vizianagaram), Chirala Silk Sarees (Bapatla)
• Madhya Pradesh: Sandstone Tiles (Gwalior)
• Assam: Rice & Rice Products (Nalbari)

• Kerala: Coffee (Wayanad)

• Rajasthan: Blue Pottery (Jaipur), Bandhej (Tie & Dye)

• Gujarat: Patola Silk (Patan)

The ODOP initiative is a testament to India's rich cultural heritage, diverse industrial base, and commitment to leveraging local strengths for national economic growth. It continues to be a cornerstone of the government's strategy for grassroots development and export promotion.

Conclusion: Local to Global — A Vision of Inclusive Export Growth

India’s upcoming export guidelines mark a decisive step toward inclusive, grassroots-driven growth. By promoting first-time exporters, expanding market access, and showcasing district-specific products, the Centre is laying the groundwork for a more equitable and diversified export economy. As states like Bihar demonstrate full ODOP implementation, the path ahead points to a more self-reliant India, with each district contributing to the nation's global footprint.