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March 5, 2024

Open Network for Digital Commerce (ONDC) is a network based on open protocol and will enable local commerce across segments, such as mobility, grocery, food order and delivery, hotel booking and travel, among others, to be discovered and engaged by any network-enabled application.

What is ONDC?

ONDC stands for Open Network for Digital Commerce. It is a government-backed initiative to create a unified open platform for all aspects of the digital commerce ecosystem in India. ONDC is designed to be open, transparent, and non-discriminatory, and it will allow businesses of all sizes to participate in the digital commerce market.

Benefits of ONDC

ONDC is expected to bring a number of benefits to the Indian digital commerce market, including:

  • Increased competition and choice for consumers: ONDC will create a level playing field for all businesses, large and small, which will lead to increased competition and choice for consumers.
  • Lower prices: Increased competition is expected to lead to lower prices for goods and services on the ONDC platform.
  • Improved efficiency: ONDC is expected to improve the efficiency of the digital commerce market by streamlining processes and reducing costs.
  • Increased access to markets: ONDC will make it easier for businesses, especially small businesses and MSMEs, to reach a wider audience and grow their businesses.
  • Increased transparency: ONDC will increase transparency in the digital commerce market by making it easier for consumers to compare prices and products.
  • Protection of consumers: ONDC will protect consumers by providing a framework for resolving disputes and ensuring fair practices.

How does ONDC work?

ONDC is a two-sided platform that connects buyers and sellers. Buyers can search for products and services on the ONDC platform, and sellers can list their products and services for sale. ONDC does not own any inventory or take any commission on transactions. It simply provides the platform for buyers and sellers to interact.

ONDC uses open standards, which means that any business can participate in the platform. This will help to ensure that ONDC is a truly open and inclusive platform.

Current status of ONDC

ONDC is still in its early stages of development, but it has already made significant progress. The pilot phase of ONDC was launched in April 2022, and it is currently available in 100 cities across India. The government plans to roll out ONDC nationwide by the end of 2023.

Conclusion

ONDC is a major initiative that has the potential to revolutionize the digital commerce landscape in India. It is expected to bring a number of benefits to businesses and consumers, including increased competition, lower prices, improved efficiency, and increased access to markets. ONDC is still in its early stages of development, but it has already made significant progress. The government plans to roll out ONDC nationwide by the end of 2023.

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