GS Paper - 3 (Economy)

India on 29 April 2022 launched the pilot phase of open network for digital commerce (ONDC), a UPI-type protocol, in five cities with an aim to democratise the fast growing e-commerce sector, help small retailers and reduce dominance of online retail giants. After UPI, another game changing idea to democratise commerce - ONDC soft launch to select consumers, sellers and logistics providers. Get ready for a world of choice, convenience and transparency.

What

  1. The initiative is also aimed at curbing the dominance of two large multinational e-commerce players, which control more than half of the country's e-commerce trading, limit access to the market, and give preferential treatment to certain sellers and squeeze supplier margins.
  2. As many as 80 firms are currently working with the ONDC and they are at different stages of integration.
  3. These companies are making their apps for sellers or buyers or logistics or payment gateways.
  4. At the pilot phase, the target is to onboard 150 retailers in five cities - Delhi NCR, Bengaluru, Bhopal, Shillong and Coimbatore.
  5. In the pilot phase, the ONDC has roped in eSamudaay, ERP Player Gofrugal, digital marketing outfit Growth Falcon, and automation and data insights outfit Sellerapp to work with sellers.
  6. It would focus on apps in regional languages for both buyers and sellers to tap small merchants and rural consumers.