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Economy
Mahesh

03/05/22 08:47 AM IST

Open Network for Digital Commerce (ONDC)

In News 
  • The Indian government is all set to launch an Open Network for Digital Commerce to end the dominance of the US-based e-commerce companies like Amazon and Walmart in India.

ONDC 
  • The ONDC platform will let buyers and sellers interact with each other and transact online. 
  • ONDC is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.
  • With the launch of ONDC, the government aims to promote an open platform for exchange of goods and services through electronic networks.
  • The open network platform will be launched in five cities including Delhi NCR, Bengaluru, Bhopal, Shillong and Coimbatore.
  • India's ONDC plan aims to onboard 30 million sellers and 10 million merchants online.
  • The plan is to cover at least 100 cities and towns by August. The government will focus on apps in local languages for buyers and sellers.
  • The apps would highlight small merchants and rural consumers.
  • Banks such as State Bank of India, ICICI Bank and Bank of Baroda have already committed total investments of 2.55 billion rupees.
Why ONDC? 
  • At present, only two large e-commerce players (Amazon and Flipkart) control more than half of the country’s e-commerce trade.
  • This creates monopolies and gives rise to issues like limited access to the market, preferential treatment to some sellers, and a squeeze on the supplier margins. To prevent such issues ONDC is being launched.

Source-PIB 

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