Open Network for Digital Commerce (ONDC)


    In News

    • The US firm Microsoft has become the first big tech company to join the Open Network for Digital Commerce (ONDC).


    • ONDC:
      • Launched by DPIIT
      • It is a not-for-profit organisation that will offer a network to enable local digital commerce stores across industries to be discovered and engaged by any network-enabled applications. 
      • It is neither an aggregator application nor a hosting platform, and all existing digital commerce applications and platforms can voluntarily choose to adopt and be a part of the ONDC network.
      • It is an open-source platform and will work in e-commerce, similar to what UPI does in digital payment. Integration of the platform will be provided by the Quality Council of India.
      • Aim: To enable buying of products from all participating e-commerce platforms by consumers through a single platform. 
    • Need of ONDC:
      • There has been rising dominance of global players in India’s e-commerce, which makes the entry of smaller players difficult. ONDC eyes at transforming from an operator-driven platform-centric model to a facilitator-driven interoperable open network model.
    • Significance of ONDC:
      • The ONDC will standardise operations like cataloguing, inventory management, order management and order fulfilment.
      • It will be made simpler and easier for small businesses to be discoverable over network and conduct business.
      • It will open the world of choice to everyone utilising it. 
      • Confidentiality: ONDC will work with its participants to publish anonymised aggregate metrics on network performance without compromising on confidentiality and privacy.
      • Transparency: The proposed platform aims to create a level playing field for e-commerce behemoths such as Amazon, Flipkart, and offline traders who have been crying foul at the unfair trade practices of these e-tailers. 

    Source: IE