Open Network for Digital Commerce (ONDC)
- Open Network for Digital Commerce (ONDC) is India’s open-source platform for e-commerce.
- It is an initiative to control digital monopolies and make the industry more inclusive for buyers and sellers alike.
- It is a first-of-its-kind initiative in the world.
- It has been launched by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry.
- It was incorporated as a private sector non-profit company in 2021.
- It fosters open networks developed on open-sourced methodology, using open specifications and network protocols, and independent of any specific platform.
- Open source implies that technology or code deployed for the process is freely made available to everyone.
- It is modelled around Unified Payments Interface (UPI).
- The task to integrate e-commerce platforms on ONDC has been assigned to the Quality Council of India.
Significance of ONDC
- It empowers merchants and consumers by breaking silos to form a single network to drive innovation and scale, transforming all businesses from retail goods, and food to mobility.
- As all e-commerce companies will operate using the same processes, it provides a boost to smaller online retailers as well as new entrants by ushering in discoverability, interoperability, and inclusivity.
- 31 August 2022: The National Payments Corporation of India (NPCI) has received the nod from the Reserve Bank of India and the Union Ministry of Finance to acquire a 10 per cent stake in the Open Network for Digital Commerce (ONDC).
- 30 August 2022: Union Minister for Commerce and Industry, Shri Piyush Goyal called for the integration of the One District One Product (ODOP) initiative with the Open Network for Digital Commerce (ONDC).