Integration of One District One Product (ODOP) initiative with Open Network for Digital Commerce (ONDC)

Integration of ODOP Initiative with ONDC- Relevance for UPSC Exam

• GS Paper 2: Governance, Administration and Challenges-
  • Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Integration of ODOP Initiative with ONDC in News

• Recently, Union Minister for Commerce and Industry called for the integration of One District One Product (ODOP) initiative with Open Network for Digital Commerce (ONDC).
• ONDC would help in further expanding the frontiers of ODOP by bringing buyers and sellers together on a democratic platform.
• The Minister asked that flagship programs of the government such as Startup India, Make in India, district as export hubs etc. be converged with the vision of ODOP.
  • He asked all the Ministries of GoI to help further expand the mandate of ODOP through complementary initiatives.

What is Open Network for Digital Commerce (ONDC)?

• About: ONDC is a network based on open protocol that will enable local commerce across segments, such as mobility, grocery, food order and delivery, hotel booking and travel, among others, to be discovered and engaged by any network-enabled application.
• Mandate: The ONDC platform aims to create new opportunities, curb digital monopolies and by supporting micro, small and medium enterprises and small traders and help them get on online platforms.
• Associated Ministry: ONDC is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.

How will ONDC work?

• ONDC initiative would work like the Unified Payments Interface (UPI) project.
• Just as the UPI allowed people to send or receive money, irrespective of the payment platform, the ONDC initiative will allow buyers and sellers in the e-commerce market to transact regardless of the platform they are registered to.

What is One District One Product (ODOP) initiative?

• Background: One District One Product (ODOP) initiative is operationally merged with the ‘Districts as Export Hub’ initiative.
• About: One District One Product (ODOP) is an initiative that is seen as a transformational step forward towards realizing the goal of AtmaNirbhar Bharat.
• Mandate: One District One Product (ODOP) scheme aims to realize the true potential of a district, fuel economic growth and generate employment and rural entrepreneurship.
• Implementation: ODOP initiative is being implemented by DGFT, Department of Commerce, with the Department for Promotion of Industry and Internal Trade (DPIIT) as a major stakeholder.
  • The Department of Commerce through DGFT is engaging with State and Central Government agencies to promote the initiative of One District One Product.
  • State Export Promotion Committee (SPEC) and District Export Promotion Committee (DEPC) have been constituted in states under the ODOP initiative.
  • DEPC is constituted in all districts of India, except districts of the state of West Bengal.
• Marketing Avenues: All the products under ODOP scheme will be available at NAFED Bazaars, E-commerce platforms, and prominent retail stores across India.

One District One Product (ODOP)- Key Objectives

• Transforming Districts into Export Hubs: One District One Product (ODOP) scheme aims to convert each District of the country into an Export Hub by-
  • Identifying products with export potential in the district,
  • Addressing bottlenecks for exporting these products,
  • Supporting local exporters/manufacturers to scale up manufacturing, and find potential buyers outside India.
• Promoting Industry and Export: One District One Product (ODOP) initiative aims to promote the manufacturing & services industry in the District, along with promoting exports of identified products.
• Generating Employment: One of the key goals of the One District One Product (ODOP) initiative is to generate employment for the local people in the District.

Open Network for Digital Commerce

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