All you need to know about the One District One Product Scheme

District One Product

As part of India’s new export policy for 2020 to 2025, the focus is on Make in India and the promulgation of export-import units. Initially, U.P (Uttar Pradesh) has become the 1st state to execute this scheme, while various other states are planning to implement it. In this blow, we would discuss the practical impact of the scheme and how small businesses, firms and entrepreneurs can benefit from it.

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The purpose of the one district one product scheme is to turn each country’s district into an export hub. This will promulgate exports and services and manufacturing industries in the district while providing employment in the district and state population.

Product categories of the scheme.

– Unlike the scheme’s appellation, there is no time-bound limitation on using only one product from one district. Hence, more than two products with economic importance in the district are allowed in the scheme.

– Many products have been included under the several states’ scheme, such as herbs, spices, fabrics, vegetables, fruits, painting, weaving, jewellery, farming products, toy making, handloom leather, ready-made garments, khadi products and so forth.

District export promotion committees have been formulated.

-This committee would be solely responsible for prepping and acting on the district-specific export action plan. This committee will be headed by the district collector, district development officer, district magistrate and co-chaired by the appointed regional authority of the DGFT (directorate general of foreign trade). This would also cooperate with several governmental sponsored organizations and councils for export facilitation.  

Benefits of the scheme.

– Recognising products that would allow greater export of a district.

-Resolving bottlenecks like regulatory approvals, licenses, tax compliances, and other exporting or manufacturing challenges. This has been initiated in some states through the ‘green card,’ which is a single-window approval facility.

– Support to local exporters, entrepreneurs, manufacturers in scalability.

– Helps in locating potential buyers outside the state as well as India.

– Develop, preserve, and promulgate local crafts, arts, and traditional skills of the communities.

– Competitive and transparent bidding process for stakeholders in choosing the one district one product policy.

– A margin money subsidy scheme initiated by the U.P government for promulgating self-employment among the workers. It would provide a subsidy of up to Rs. 20 lacs per unit. It can also address branding and marketing issues.

– The government, via its outreach facility, would also collaborate with E-commerce companies like Flipkart, Amazon and eBay. This can provide better access to products in India and abroad.

Benefits to entrepreneurs.

– The benefits that business owners would get by accessing institutions like QCI (quality council of India), IIP (Indian Institute of packaging), NID (national institute of design), NIFT (national institute of fashion technology). This can improve design, packaging, quality and other structural issues related to products.

-A common facility centre that would help entrepreneurs locate apt designing labs, research facilities, and testing and upgrades in the business’s production setup.

– State-specific district committees would help businesses get finances from local banks, state schemes and export schemes of the GoI.

– Skill development would provide mentorship to businesses starting from workers to top-level management.

– R&D support for developing IP that includes trademark registration for logos, copyright for creatives and even patent for innovation. This would allow entrepreneurs to safeguard their brand better in a fiercely competitive world.

– Industrial cohorts being for these products would also less manufacturing costs for all enterprises located within the cohorts.

Financial and other monetary benefits for small businesses.

– Many state governments are offering financial support for up to ninety percent of the project cost. This would minimize the risk faced by entrepreneurs in accessing debt finance.  

– Access to certification – many Indian businesses face issues related to credible certification when it comes to exporting to Europe and America. Especially in food and agriculture products. -The scheme would ensure that they would get better access to apt international certifications like CE (Conformity European), CCC (china international certificate).

– This scheme would also facilitate raising equity from the institutions such as the small industries development bank of India (SIDBI) and BSE and NSE for larger firms.

– Fast movements of goods will be ensured through easy limits on export transporting like liberal road-carrying limits of trucks, concession in freight by rail, and synchronization with the transport department. A subsidy in air cargo charges would also offer specific products under the scheme.