Indias' ONDC

What is ONDC? 

The Open Network for Digital Commerce (ONDC) is a network built on an open protocol that enables local commerce across segments to be identified and engaged by any network-enabled application, including mobility, shopping, food order and delivery, hotel booking, and travel, among others.

 

The platform promises to open up new opportunities, break up digital monopolies, and let micro, small, and medium-sized businesses and independent merchants join online marketplaces. It is a project of the Ministry of Commerce and Industry's Department for Promotion of Industry and Internal Trade (DPIIT).

What features ONDC will offer?

By converting digital or electronic commerce from a platform-centric paradigm to an open network, ONDC, a UPI of e-commerce, aims to democratise the industry. Merchants will be able to preserve their data through ONDC in order to approach customers and establish credit histories.

The planned government-backed platform intends to level the playing field for online retail giants like Amazon and Flipkart as well as offline merchants who have been complaining about the unfair business practices of these e-tailers. The platform will also be in conformity with the upcoming Personal Data Protection Bill as well as the Information Technology Act of 2000.

The ONDC system will make it possible for buyers and sellers to trade via an open network independent of the platform or application they use. By dissolving silos and creating a single network to spur innovation and scalability, it will also enable businesses across all industries, from retail to food to transportation.

 

The new framework seeks to support open networks created using open standards and open network protocols that are independent of any particular platform.

It is anticipated to digitalize the whole value chain, standardise processes, encourage supplier involvement, increase logistical efficiency, and improve value for customers.

 

The government's official statement is that ONDC must take all necessary steps to protect the privacy and confidentiality of data in the network. Participants are not required by ONDC to share any transaction-level data with ONDC. will collaborate with its users to provide anonymous aggregate measurements of network performance while maintaining privacy and confidentiality.

Currently, ONDC is in the pilot stage. To develop and hasten the adoption of ONDC, the government has established a nine-member advisory board, which includes Nandan Nilekani from Infosys and R S Sharma, CEO of the National Health Authority.