Trade, import and exports for MSMEs: One District One Product – Districts as Export Hub (ODOP-DEH) initiative by the government has ushered in nearly four times jump in exports on an average across states since the financial year 2018-19, said State Bank of India (SBI) in its latest Ecowrap report on Monday authored by the Group Chief Economic Adviser Soumya Kanti Ghosh.
The ODOP programme intends to essentially transform every district of the country into an export hub by identifying and promoting a product in which the district specialises. The programme was operationally merged with the Department of Commerce’s DEH initiative around last year. DEH also aimed at converting each district into an export hub. Under ODOP-DEH, products and/or services with export potential have been identified in the country’s 733 districts.
“With the introduction of ODOP-DEH in FY20, exports have seen a 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 Ghosh in the report.
State-wise exports showed Gujarat led the tally in FY22 with exports amounting to $126,805 million, up 366 per cent from $27159 million in FY19 followed by Maharashtra’s $73,120 million exports in FY22, jumping 218 per cent from $22,986 million in FY19 and Tamil Nadu’s 192 per cent growth in exports from $12,033 million in FY19 to $35,169 million in FY22, the report noted.
However, so far, services identified for export promotion are not large and only pertain to tourism, and IT/ITES. Hence, Ghosh suggested services exports be given a more prominent place under ODOP-DEH. Indian Economy is service-based and around 55 per cent of GDP comes from the service sector.
Importantly, Commerce Minister Piyush Goyal in August this year had called for integrating ODOP with the Open Network for Digital Commerce (ONDC) project to “further expand the frontiers of ODOP by bringing buyers and sellers together on a democratic platform. Goyal was speaking at an ODOP event. Goyal had suggested that the ODOP catalogue to be made exhaustive to serve as a one-stop gifting destination for ministries, missions, state governments and industry and also to serve as a high-quality database of high-quality suppliers.