The Open Network for Digital Commerce (ONDC), launched by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce, aims to democratize digital commerce in India. Introduced in April 2022, ONDC promotes open-source protocols for seamless transactions across platforms, fostering innovation and inclusivity.
Core Objectives of ONDC:
- Democratization: Reducing dependency on monopolistic platforms.
- Inclusivity: Empowering MSMEs, artisans, and small businesses.
- Cost Efficiency: Lowering operational costs for sellers.
- Market Expansion: Bridging regional and linguistic barriers.
- Customer Empowerment: Offering diverse options and competitive pricing.
How ONDC Operates: ONDC uses standardized APIs and open protocols to facilitate transactions between buyers, sellers, and logistics providers. With a decentralized architecture, it promotes interconnectivity without controlling services directly.
Key Participants on ONDC Network:
- Buyer Applications: Platforms enabling customers to access sellers.
- Seller Applications: Interfaces for businesses to list and manage offerings.
- Logistics Providers: Facilitators for product deliveries.
- Technology Enablers: IT infrastructure and digital tool providers.
Collaborations for Broader Impact: ONDC partners with ministries and initiatives such as MSME-TEAM, Startup India, Digital India, and NABARD to onboard small businesses, FPOs, and local artisans. Efforts include financial assistance, skill development programs, and digital readiness certification.
Empowering MSMEs: ONDC aims to onboard 5 lakh MSMEs by 2027 under the MSME-TEAM initiative, with special focus on women-owned enterprises. Workshops and hand-holding assistance ensure smoother onboarding and participation.
Key Achievements:
- Pilot programs in Bengaluru and Delhi.
- Fair Price Shops onboarded in Himachal Pradesh.
- Expansion across categories like Mobility, Fashion, Health, and Electronics.
- Presence in 616+ cities as of January 2024.
Government Awareness Initiatives: ONDC conducts workshops, virtual training, and awareness campaigns in collaboration with industry bodies like FICCI and NASSCOM. The ‘ONDC Academy’ offers curated learning resources, and a WhatsApp Bot ‘ONDC Sahayak’ assists sellers and buyers.
Conclusion: ONDC represents a landmark step towards creating a transparent, inclusive, and competitive e-commerce ecosystem. By addressing monopolistic challenges and empowering MSMEs, ONDC is shaping a sustainable digital future for India’s commerce sector.
References:- https://ondc.org/
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