The Open Network for Digital Commerce (ONDC) has seen a remarkable increase in its transactions. They grew from over 1,000 in January, 2023 to more than 9.9 million by June, 2024. This rapid expansion shows the network’s growing popularity and the increasing adoption of digital commerce in India.
Large Network of Sellers and Service Providers
ONDC now boasts over 5.7 lakh sellers and service providers. According to Minister of State for Electronics and Information Technology Jitin Prasada, the platform includes 71 seller applications, 22 buyer applications and 16 logistics service providers. Despite this impressive growth, ONDC does not currently track the number of consumers or buyers on the network.
State-Level Collaboration and Workshops
To facilitate its expansion, ONDC has been actively collaborating with various departments across all states and union territories. Each state or UT has appointed a nodal officer to engage at the state level. To raise awareness about ONDC, 198 workshops have been conducted. These efforts have resulted in ONDC signing Memorandums of Understanding (MoUs) with 11 states. They onboarded 11 State Emporiums and integrated 31 state entities and public sector undertakings (PSUs) into the network.
Background and Mission of ONDC
Launched in 2021, ONDC is an initiative by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce & Industry. ONDC aims to promote open networks for the exchange of goods and services over digital or electronic networks. Unlike traditional e-commerce platforms, ONDC is a Digital Public Infrastructure based on a network model. By this they are making it an open-source platform designed to democratize e-commerce in India.
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Broadening Services and New Integrations
ONDC continues to expand by adding new categories and broadening its services across India. Companies like Delhivery, Paytm, PhonePe, Uber, IDFC Bank, Kotak, Shiprocket, Dunzo and Tata Neu have integrated their services with ONDC. The platform is also seeking to integrate banks and fintech platforms, with early pilots for credit disbursal already initiated. Partners in these pilots include Tata Group’s superapp Tata Neu, Paisabazaar, HDFC Bank, IDFC First Bank, Karnataka Bank, and fintech firms like Fibe.
About the Author
Mr. Radhesh Tarang Shah, is a management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
