Prime Minister Narendra Modi’s One District One Product scheme has led to several states in the country quadrupling their exports, setting India on the path to make a new record in merchandise export this fiscal. This fiscal year 2022-23, India is set to surpass the previous year’s $420 billion in exports, SBI said in its latest Ecowrap research report. The One District One Export – District as Export Hubs (ODOP-DEH) initiative, started by Uttar Pradesh in 2018, primarily aims to transform every district of the country into an export hub. Launched under the slogan “Vocal for Local,” the ODOP-DEH was applied to other states in the country, after seeing its success in UP.
Narendra Modi’s push to districts to become export hubs
Modi has pushed the ODOP-DEH initiative on multiple occasions, and especially after he was declared the brand ambassador of UP’s flagship scheme in June this year. In the same month, Modi extended products manufactured under the ODOP scheme as gifts to the international leaders during his visit at the G7 summit. The Modi government combined the ODOP scheme with the Districts as Export Hubs (DEH) initiative by the Directorate General of Foreign Trade (DGFT), Department of Commerce. Being a centrally-sponsored scheme, the grant under the initiative is divided between the central and state government in the ratio 60:40.
733 districts helping states grow exports under ODOP scheme
After being applied across the nation, the scheme was able to identify export potential, for both products and services, in a total of 733 districts. Since its launch, the scheme has led to a quadruple growth in export in various states. “With the introduction of ODOP-DEH in FY20, exports have seen tremendous increase in nearly all states. Exports of Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Sikkim, Telangana, Uttar Pradesh and West Bengal have increased more than thrice since the introduction of ODOP-DEH initiative,” said Soumya Ghosh, Group Chief Economic Advisor, SBI, on the efficacy of the scheme.
These states quadruples exports, helped by ODOP scheme
The data in SBI’s report showed an exponential increase in goods export of various states in FY22, when compared to FY19. For instance, Haryana’ export jumped more than 314 per cent to $15.55 billion as compared to FY19. Maharashtra’s export increased almost 340 per cent to $25.88 billion in FY22, from FY19’s $5.9 billion. Several other states followed suit and grew their export three times from where it stood in FY19. Bihar was one the states that saw a massive jump in export, registering nearly 400 per cent growth in FY22 from FY19. Primarily exported goods in the state of Bihar include Shahi Litchi, Bhagalpur Silk, Madhubani paintings, Bhagalpuri Zardalu.
The Ministry of Commerce and Industry, on October 3, released the country’s import and export scenario in the April-September half of this fiscal year. The release stated that the merchandise export showed a 15.54 per cent on-year growth from $198.25 billion in the first half of FY22. Despite the exports slipping by more than 3 percent in the month of September, Ghosh highlighted a stable export growth in India.