Srestha RoyThe planned ONDC aims to control digital monopolies and increase diversity in the digital commerce ecosystem. As a platform that promotes open networks built using open-source methodologies, ONDC has the potential to help many small, medium, and micro businesses join the digital revolution.
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The Department for Promotion of Industry and Internal Trade’s project attempts to connect buyers and suppliers on a single platform. It would sever Amazon and Flipkart’s grip on the e-commerce market.
The real difference will come when we see small merchants from various cities being able to make their products equally visible without being a part of a large established platform. ,” according to Koshy T, CEO, ONDC, while addressing the recently concluded IVCA Conclave 2022.
ONDC is working closely with a variety of organizations that may be able to help such businesses get online. “We want to accomplish two goals. The first step is to educate them and provide them with solutions. Second, making certain that logistics are in place. As a result, we’ve begun to partner with numerous states and agencies, such as SIDBI and NABARD,” Koshy explained.
According to a recent analysis from administrative consulting firm RedSeer, India’s e-commerce business is expected to reach $5.5 billion in market size by 2025, up from $700 million presently. The ONDC program aims to increase innovation by bringing together a diverse group of players.
ONDC is expected to become the UPI second of e-commerce in India, according to Rajan Anandan, Managing Director, Surge & Sequoia Capital India LLP. “The goal here is to democratize commerce, both in terms of the customer interface and for India’s millions of businesses.”
Anandan predicted how the dynamics will play out for e-commerce businesses, stating that as the network grows, a new era of shopper front-end commerce businesses will emerge.
ONDC’s goal is to promote open networks built on open-source techniques, using open standards and open network protocols that are platform agnostic. ONDC is meant to digitize the entire value chain, standardize operations, boost supplier inclusion, improve logistical efficiency, and increase customer value, according to the ministry.
In simple terms, the ONDC programme intends to encourage open networks for all elements of digital or electronic products and service exchange. ONDC is to e-commerce in India what UPI is to digital payments.
The ONDC will empower merchants and consumers by breaking down silos to create a single network that will drive innovation and scalability across all industries, including retail, food, and mobility, according to the ministry.