The Open Network for Digital Commerce (ONDC), a digital infrastructure initiative launched in 2021, has witnessed remarkable growth, with transactions crossing 70 lakh in April this year. Led by the Department for Promotion of Industry and Internal Trade (DPIIT), ONDC aims to democratize digital commerce and create a level playing field for businesses of all sizes. Let’s explore the key highlights and significance of ONDC through subheadings.
Facilitating Digital Commerce
ONDC serves as a pioneering digital infrastructure that aims to democratize digital commerce in India. By providing a platform that lowers entry barriers and fosters competition, ONDC opens up new opportunities for businesses, especially small and medium-sized enterprises (SMEs), to participate in the digital economy.
Impressive Milestones
The Department for Promotion of Industry and Internal Trade (DPIIT) announced that over 5 lakh sellers have been onboarded on the ONDC platform, with more than 70% of them being small or medium-sized sellers. Additionally, over 125 ecosystem stakeholders, including startups, unicorns, and businesses, have signed Letters of Intent (LoI) to join ONDC, reflecting the platform’s growing influence and appeal.
Role of Startups
Startups play a pivotal role in driving innovation and fostering competition within the ONDC ecosystem. Joint Secretary of DPIIT, Sanjiv Singh, emphasized the significance of startups in enhancing consumer choice and driving momentum for the national initiative. More than 125 startups have committed to onboard the ONDC network, demonstrating their enthusiasm for leveraging the platform to innovate and expand their reach.
Addressing Market Challenges
Creating and discovering markets pose significant challenges for startups, especially those that have been digitally excluded. ONDC addresses these challenges by lowering entry barriers to digital commerce and providing a level playing field for all e-commerce players. The platform empowers small-scale businesses and digitally excluded entities to participate in the digital economy on equal footing with larger counterparts.
ONDC Entity and Governance
The ONDC entity, established as a not-for-profit company under Section 8 of the Companies Act 2013, manages and operates the ONDC Network. Responsible for building and maintaining the underlying infrastructure, the entity defines the rules of engagement and code of conduct for network participants through the ONDC Network Policy and the ONDC Network Participant Agreement.
