One District One Product - 2018 - IMPRI Impact And Policy Research Institute

Policy Update
Riya Singh

BACKGROUND

The One District One Product(ODOP) policy was started by Yogi Adityanath, Honourable Chief Minister of Uttar Pradesh, on January 24, 2018. The scheme aims to encourage sales of indigenous and specialized products/crafts of Uttar Pradesh, generating employment at the district level. This scheme resulted in an increase in overall export of the state by 76%, leading to the sale of more than Rs 2000 Cr of ODOP products each year. More than 1 lakh ODOP artisans have been trained and provided with modern ODOP toolkits under the ODOP Skill Development & Toolkit Distribution Scheme, since the start of the ODOP programme. Assessing these achievements of the policy, the Central Government initiated ODOP in all states/UTs as a transformational step to realise the potential of a district, fuel economic growth, generate employment and rural entrepreneurship and move towards the goal of ‘Aatmanirbhar Bharat’. The need for ODOP arose from the uneven development across districts, where potential-rich traditional industries lacked branding, scale, and access to formal finance. This scheme has been adopted under the “PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme by the Ministry of Food Processing Industries (MoFPI).

FUNCTIONING

ODOP organises workshops to enhance manufacturing processes, enable product diversification, and improve packaging and logistics all over India. The ODOP team conducts field visits and engages extensively with different stakeholders to address issues and resolve gaps in the supply chain. Events and campaigns are organised to build buyer-seller contacts, promote domestic sales and enable exports. Facilitate collaboration between various line ministries and industry associations for promotion of product and better market access.

The scheme is working towards-

For enabling holistic socioeconomic growth across all regions
To attract investment in the district to boost manufacturing and exports
To generate employment in the district
To provide an ecosystem for Innovation using Technology at the District level to make them competitive with the domestic as well as International market

Credit-linked subsidy has been sanctioned to 12,024 micro food processing units based on ODOP in the country under PM Formalization of Micro food processing Enterprises (PMFME) Scheme, out of which 109 units are in Rajasthan, 756 units are in Uttar Pradesh, 69 units are in Gujarat, and 240 units are in Odisha.

The growth of ODOP units and other groups under the PMFME scheme is assessed and monitored through regular follow-up/review meetings with States/UTs, lending banks, concerned Ministries/Departments and other stakeholders. Handholding support is also provided to beneficiaries under the PMFME Scheme.

PERFORMANCE

The performance of the scheme is assessed through multiple measures like-

Reach and Scale: According to MoFPI and IndBiz commentary, more than 1,200 products have been identified across 767 districts in the country under the ODOP initiative. For example, in the State of Gujarat, under the ODOP/PMFME framework, 18,872 micro food processing enterprises were sanctioned credit-linked subsidy and 76 ODOP-based incubation centres were approved.

Exports and Market Access: The export from all the states has risen. Although state-specific, in the case of Uttar Pradesh, exports rose from US $16.24 billion in 2018-19 to US $21.68 billion in 2022-23, as per the state’s MSME & export-promotion department. The national ODOP portal/list emphasizes that value-chain support includes perishable agricultural produce, cereals, processed foods, traditional herbal edible items and waste-to-wealth products.

Employment and Entrepreneurship: The ODOP programme reportedly facilitated the training of over 3.14 lakh entrepreneurs under associated schemes (e.g., Vishwakarma Shram Samman) and linked loans via Mudra, Start-Up India, etc. Rural households and micro enterprises are reported to constitute a large share of the beneficiaries: assessment shows nearly 66 % of units under the FME/ODOP approach are located in rural areas and approx. 80 % are family-based enterprises.

Infrastructure and Institutional Strengthening: States have instituted district-level resource persons, cluster infrastructure approvals and brand launches (for example, in Gujarat) as part of ODOP roll-out.

IMPACT

The benefits envisaged under the scheme are as follows:

Support to Individual Micro Enterprises: Credit-linked capital subsidy 35% of the eligible project cost, maximum ceiling Rs . 10 lakhs per unit. Beneficiary contribution – minimum of 10% of the project cost, balance loan from Bank.

Support to FPOs/ SHGs/ Producer Cooperatives: Credit-linked Grant 35% to support clusters and groups such as FPOs/ SHGs/ Producer Cooperatives along their entire value chain for sorting, grading, storage, common processing, packaging, marketing, testing, etc.

Support to SHGs: Seed capital Rs. 40,000/- per member of SHG involved in food processing activity for working capital and purchase of small tools. Seed capital to be given as a grant to the SHG Federation by SNA/ SRLM for loan to the members of SHGs.

EMERGING ISSUES

Fragmented supply chains and scale limitations- Many artisan clusters under ODOP remain small, geographically dispersed, and lacking economies of scale. This fragmentation limits their ability to produce at competitive volumes and hinders integration into larger value chains.

Limited market awareness, branding and digital linkages- While e-commerce linkages have been promoted, many artisans still remain unaware of scheme benefits or lack digital literacy to participate fully in online markets. Marketing beyond traditional fairs and export shows remains underutilised.

Technological adoption and quality-standardization- The adoption of newer technologies—both in production and quality-control—is uneven. Inadequate access to quality-testing infrastructure and certification mechanisms undermines confidence in ODOP product branding.

Financial access and procedural complexity- Although financing and subsidies are available, many micro-entrepreneurs face complex procedures, a lack of collateral, and difficulty navigating credit processes. Some studies highlight that access to credit remains a bottleneck in scaling ODOP businesses.

Data-transparency and measurement challenges- Discrepancies in reported export figures and outcomes have been highlighted. For example, one set of official figures claims ODOP exports constituted 62 % of UP’s total exports in 2021-22, while others claim 72 %. The lack of consistent data raises concerns for monitoring and evaluation.

Cluster sustainability and migration issues- Some clusters, particularly in less-developed districts, face challenges of sustaining momentum once initial support is withdrawn. Migration of youth from rural to urban areas remains an issue despite ODOP’s intent to generate local employment.

WAY FORWARD

Strategy to Implement the Scheme-

Organising Sectors- By providing specific platforms such as MSME sectors, Cooperative and Self Help Groups (SHGs), the artisans would be able to increase the quality and production of traditional products. This would lead to an increase in income and employment opportunities.

Creating a specific database- The scheme will extensively work on creating a database exclusively on finding stakeholders, distribution of products, details on total production and export, raw material requirements and training to make the scheme available to all eligible people.

Signing of MoUs- To increase skill, quality, and productivity, ODOP has collaborated with several sectors such as Quality Control Of India (QCI), National Stock Exchange (NSE), and Bombay Stock Exchange (BSE). To improve the marketing and promotion, ODOP has collaborated with companies such as Amazon, Wipro, GE Health Care, and small entrepreneurs belonging to textiles, tourism, and food processing.

Financial Stability-To provide financial support to the artisans without interruption, the scheme coordinates with MUDRA, PMEGP, Mukhya Mantri Yuva Swarojgar Yojana and Vishwakarma Shram Samman Yojna. This flow of support helps ODOP to provide the required financial support to increase production.

Marketing- The government of Uttar Pradesh would collaborate with companies to widen the scope of distribution, increase online promotion and sales activities, advertising and publicity and create a micro plan to export products nationally and internationally.

Research and Training- To increase the skills needed to compete with manufacturers globally, technical and technological training is provided to the Artisans for increased productivity, innovation, and research.

CONCLUSION

The ODOP scheme acts as a vehicle for district-level economic transformation, rural employment generation, MSME formalisation and regional export growth. While the outcome in U.P. encouraged the Centre to expand it to the national level, build institutional robustness, have data transparency and market integration. With targeted strategic interventions and sustained ecosystem focus, ODOP can become a significant lever in India’s growth story—amplifying local strengths, empowering grassroots entrepreneurship and linking them seamlessly to global markets.

REFERENCES

1. Ministry of Agriculture & Farmers Welfare. (2021, May 21). FAQs on One District One Product (ODOP) and PM-FME scheme. National Food Security Mission. https://www.nfsm.gov.in/WriteReadData/UploadDOC/CMP_Circulars_21052021_637571914285840168_FAQ_ODOPPMFME_May20121.pdf](https://www.nfsm.gov.in/WriteReadData/UploadDOC/CMP_Circulars_21052021_637571914285840168_FAQ_ODOPPMFME_May20121.pdf)

2. IndiaFilings. (n.d.). One District One Product (ODOP). https://www.indiafilings.com/learn/one-district-one-product/](https://www.indiafilings.com/learn/one-district-one-product/)

3. Invest India. (2023, September). One District One Product (ODOP) brochure. https://static.investindia.gov.in/s3fs-public/2023-09/II-005_ODOP%20Brochure_R4.pdf](https://static.investindia.gov.in/s3fs-public/2023-09/II-005_ODOP%20Brochure_R4.pdf)

4. Parliament of India. (n.d.). Annexure: ODOP-related parliamentary question document. https://sansad.in/getFile/annex/263/AU46.pdf?source=pqars](https://sansad.in/getFile/annex/263/AU46.pdf?source=pqars)

5. Invest India. (n.d.). One District One Product (ODOP) initiative. https://www.investindia.gov.in/one-district-one-product](https://www.investindia.gov.in/one-district-one-product)

6. Ministry of Food Processing Industries (MoFPI). (n.d.). One District One Product (ODOP) under PM-FME scheme. https://www.mofpi.gov.in/en/pmfme/one-district-one-product](https://www.mofpi.gov.in/en/pmfme/one-district-one-product)

7. Press Information Bureau (PIB). (2024). ODOP initiative update. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1982734](https://www.pib.gov.in/PressReleasePage.aspx?PRID=1982734)

8. Amazon Global Selling. (n.d.). ODOP scheme: Enabling Indian sellers to reach global markets. https://sell.amazon.in/grow-your-business/amazon-global-selling/blogs/odop-scheme](https://sell.amazon.in/grow-your-business/amazon-global-selling/blogs/odop-scheme)

9. National Portal of India. (n.d.). One District One Product (ODOP) spotlight. https://www.india.gov.in/spotlight/one-district-one-product-odop](https://www.india.gov.in/spotlight/one-district-one-product-odop)

10. Mint Bureau. (2023, February 17). ODOP operationally merged with Districts as Export Hub initiative. Mint. https://www.livemint.com/economy/odop-operationally-merged-with-districts-as-export-hub-initiative-11670421027303.html](https://www.livemint.com/economy/odop-operationally-merged-with-districts-as-export-hub-initiative-11670421027303.html)

11. ODOP Uttar Pradesh. (n.d.). Frequently asked questions (FAQs). https://odopup.in/en/page/frequently-asked-questions-(faqs)](https://odopup.in/en/page/frequently-asked-questions-%28faqs%29)

About the Contributor:

Riya Singh is a Research Intern at IMPRI. She is a student of the Master of Arts in Public Policy and Governance at the Tata Institute of Social Science, Hyderabad and holds a bachelor’s degree in Political Science from the University of Delhi. Her research interests lie in government policy and data analysis.

Acknowledgment: The author sincerely thanks Ms. Aasthaba Jadeja, Ms. Bhaktiba Jadeja and the IMPRI team for their valuable support.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.