Team Initiative To Boost Digital Commerce For MSMEs

Syllabus: GS3/ Economy

In News

• The Ministry of Micro, Small & Medium Enterprises (MSME), in collaboration with the Open Network for Digital Commerce (ONDC), has launched the MSME Trade Enablement and Marketing (TEAM) Initiative.

Key Highlights

• Budget: ₹277.35 crore over three years (FY 2024-25 to FY 2026-27).
• Target Beneficiaries: 5 lakh MSEs (50% women-led enterprises).
• Implementation Partner: National Small Industries Corporation (NSIC).
• Focus Areas: Onboarding the Micro & Small Enterprises (MSEs) onto ONDC
  • Digital storefronts, integrated payment systems, and logistics support
  • Financial assistance for seller onboarding, catalogue creation & account management
  • Conducting 150+ workshops in Tier 2 & Tier 3 cities for MSMEs, especially SC/ST & women entrepreneurs
  • Strengthening linkages with PM Vishwakarma & Digital MSME schemes

Why TEAM Initiative?

• Bridging MSMEs with Digital Commerce: By integrating with ONDC, MSEs can expand their market presence and reduce operational barriers.
• Formalizing MSMEs: Helps establish digital transaction histories, enhancing credibility & trust among customers and financial institutions.
• Empowering Startups & Tech Enablers: The initiative allows startups to develop innovative solutions using the ONDC Network to support small businesses.
• Enhanced Visibility: Digital presence can improve brand visibility and attract new customers.
• Improved Credibility: Formalizing operations and establishing digital transaction histories can enhance trust and credibility with customers.

What is ONDC?

• ONDC (Open Network for Digital Commerce) is an initiative by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce, Government of India. 
• It is designed to democratize digital commerce by breaking the dominance of a few large e-commerce platforms and creating an open, decentralized network where buyers and sellers can interact across multiple platforms seamlessly.
• Key Features of ONDC
  • Interoperability: Unlike traditional marketplaces (Amazon, Flipkart, etc.), ONDC allows buyers and sellers to interact across different apps without being restricted to a single platform.
  • Decentralized Network: ONDC is not a platform but a network where businesses and individuals can buy and sell across multiple e-commerce apps.
  • Inclusivity for MSMEs & Startups: Small businesses can join ONDC without needing their own website or app, helping them reach a wider audience.
  • Competitive Pricing:  By eliminating middlemen and restrictive commission structures, ONDC allows sellers to offer better prices to consumers.
  • Support for Multiple Sectors: Initially focused on retail and food delivery, ONDC is expanding into logistics, mobility, wholesale trade, and more.

Source: ET