New Delhi: The Open Network for Digital Commerce (ONDC), which has the potential to create a market opportunity to the tune of Rs 3.75 lakh crore in additional gross merchandise value (GMV) in the next five years, is addressing the challenges of monopolistic practices and empowering smaller players, the government said on Saturday.
ONDC has the potential to transform the e-commerce landscape. The initiative is not just a technological framework but a vision for a more equitable digital future. Launched in April 2022, ONDC is an initiative aiming at promoting open networks for all aspects of the exchange of goods and services over digital or electronic networks. It is based on open-sourced methodology, using open specifications and open network protocols independent of any specific platform.
With an authorised capital of Rs 500 crore, several public and private banks and financial institutions have contributed equity to ONDC till now, according to the Ministry of Commerce and Industry. Micro, Small, and Medium Enterprises (MSMEs) form the backbone of India’s economy. ONDC provides them with a unique opportunity to overcome challenges such as limited digital reach and high platform costs.
The Ministry of MSME recently launched a sub-scheme “MSME Trade Enablement and Marketing Initiative” (MSME-TEAM Initiative), which aims at assisting five lakh MSMEs to onboard the ONDC platform. Of the total five lakh MSMEs to be benefited, two and a half lakh MSEs would be women-owned businesses. The scheme is valid from 2024 to 2027.
On Thursday, Prime Minister Narendra Modi said that ONDC has empowered small businesses and revolutionised e-commerce. “ONDC has contributed to empowering small businesses and revolutionising e-commerce, thus playing a vital role in furthering growth and prosperity,” said PM Modi in a post on social media platform X.
In the last three years, ONDC has seen more than 150 million transactions. The platform has over 7 lakh sellers and service providers, with sellers from over 600 cities and towns. Consumers from over 1,100 cities and towns have transacted through the network. Further, more than 7,000 farmer-producer organisations are part of the platform, representing 35 lakh farmers.