Open Network for Digital Commerce

In News

• The Indian government is set to launch an Open Network for Digital Commerce (ONDC).

About ONDC

• Open Network for Digital Commerce (ONDC) is an initiative whose objective is to promote open networks for all aspects of exchange of goods and services over digital or electronic networks.
• ONDC is to be based on open-sourced methodology, using open specifications and open network protocols independent of any specific platform.

ONDC and India

• The government is ready to launch the indigenously developed online e-commerce network for the public in 100 Indian cities by Diwali this year.
• Pilot Project: The open network platform will be launched in five cities including Delhi NCR, Bengaluru, Bhopal, Shillong and Coimbatore initially.
• Implementing Body: An initiative of Department for Promotion of Industry and Internal Trade (DPIIT), once fully executed, the platform would be to e-commerce, what UPI is to the digital payment domain in India.
• ‘Public’ Nature: The initiative is aimed to democratise digital commerce and move it from platform-centric model to an open-network model so that it remains largely ‘public’ in nature.

Significance

• Open Platform: By launching ONDC, the government’s objective is to promote an open platform for exchange of goods and services through electronic networks.
• Helping hand to Kirana stores: It will provide millions of ‘kirana’ stores and consumers, an alternative to multinational platforms such as Amazon and Walmart.
• End Monopolies: It will end the monopoly of the tech giants who have abused their positions to benefit only big sellers at the cost of smaller ones like Kirana store owners and small shops.
• Interactive platform: The platform will let buyers and sellers interact with each other and transact online.
• Revolutionise: It will digitise the value chains, standardise operations, will bring efficiency in logistics and more formalisation of the unorganised economy.
• Local Languages: The apps would be in local languages for buyers and sellers so that a greater number of stakeholders can interact. The apps would highlight small merchants and rural consumers.

Source: BS