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Integration of ODOP With ONDC

Focus: GS III- Agriculture

Why in News?

Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles called for the integration of One District One Product (ODOP) initiative with Open Network for Digital Commerce (ONDC).

  • The Minister said that ONDC would help in further expanding the frontiers of ODOP by bringing buyers and sellers together on a democratic platform.

About One District, One Product

Nodal: Ministry of Food Processing Industries(MOFPI). 

  • The ODOP initiative is aimed at manifesting the vision of the Hon’ble Prime Minister of India to foster balanced regional development across all districts of the country.
  • The idea is to select, brand, and promote One Product from each District of the country
    • 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 ecosystem for Innovation/ use of Technology at District level to make them competitive with domestic as well as International market
Objectives of the scheme:
  • Preservation and development of local crafts / skills and promotion of the art.
  • Increase in the incomes and local employment (resulting in decline in migration for employment).
  • Improvement in product quality and skill development.
  • Transforming the products in an artistic way (through packaging, branding)
  • To connect the production with tourism (Live demo and sales outlet – gifts and souvenir)
  • To resolve the issues of economic difference and regional imbalance
  • To take the concept of ODOP to national and international level after successful implementation at State level.

What is ONDC?

  • It is a not-for-profit organisation that will offer a network to enable local digital commerce stores across industries to be discovered and engaged by any network-enabled applications.
  • It is neither an aggregator application nor a hosting platform, and all existing digital commerce applications and platforms can voluntarily choose to adopt and be a part of the ONDC network.
  • The ONDC model is trying to replicate the success of the Unified Payments Interface (UPI) in the field of digital payments.
  • UPI allows people to send or receive money irrespective of the payment platforms they are registered on.
  • The open network concept also extends beyond the retail sector, to any digital commerce domains including wholesale, mobility, food delivery, logistics, travel, urban services, etc.

The main aims of ONDC are to:

  • Promote open-source methodology, using open specifications and
  • Promote open network protocols independent of any specific platform
  • Digitise value chains,
  • Promote inclusion of suppliers,
  • Standardize operations,
  • Derive efficiencies in logistics
  • Enhance value for consumers.

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October 2022
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