Published on: December 17, 2022

‘Open Network for Digital Commerce’(ONDC)

‘Open Network for Digital Commerce’(ONDC)

Why in news? Recently, as a true start up, ONDC began operations by working in a co-working space. Inauguration of ONDC’s official workplace is a milestone in the e-Commerce.


About ‘Open Network for Digital Commerce’(ONDC)

  • Type: Private non-profit company,
  • Parent Organization :Department for Promotion of Industry and Internal Trade (DPIIT)
  • Products: Open network for e-commerce
  • Incorporated with initial investment from Quality Council of India and Protean eGov Technologies Limited (formerly NSDL e-Governance Infrastructure Limited)
  • Nature: Set of specifications designed to foster open interchange and connections between shoppers, technology platforms, and retailers
  • Designed to keep check on Big Tech companies from violating Consumer Protection (E-Commerce) (Amendment) Rules, 2021 due to concentration of market power
  • Integration of Big tech companies into an open-source decentralised network the data portability will break data silos while data interoperability will allow innovation
  • Major ONDC objectives are as follows:
  1. Democratisation and decentralization of ecommerce
  2. Inclusivity and access for sellers, especially small and medium enterprises as well as local businesses
  3. Increased choices and independency for consumers
  • ONDC’s Beta testing phase in the city of Bengaluru was first step in operationalizing a network approach to e-commerce as an alternative to a platform-centric approach.
  • This will make the e-Commerce landscape more inclusive, accessible and experience-driven for all consumers and sellers.
  • As part of this testing , the network went live to public users in Bengaluru in Grocery and F&B categories
  • UPI, Jan Dhan, Aadhar, CoWin and ULIP are examples of this approach.