Open Network for Digital Commerce (ONDC)

Open Network for Digital Commerce (ONDC)

Recently the Ministry of Commerce and Industry has reviewed the progress of ‘Open Network for Digital Commerce’ (ONDC).

ONDC has so far been conducting end-to-end implementation testing with a limited user group to understand their requirements.

Now he plans to start the second phase of testing with the public in limited areas.

Open Network for Digital Commerce

  • ONDC is the only initiative of its kind in the entire world. It has been launched by the Department for Promotion of Industry and Internal Trade (DPIIT).
  • The initiative aims to end the digital monopoly and make the industry more inclusive for buyers and sellers.
  • It promotes open networks developed on open source technology. It uses the Open Specification and Network Protocol. Also, it is independent of any particular platform.
  • Open source means that the technology or code used for the process is freely available to all.
  • ONDC was incorporated in the year 2021 as a private sector non-profit company. It has been designed almost on the lines of Unified Payments Interface (UPI).
  • The task of connecting the e-commerce platform on ONDC has been entrusted to the Quality Council of India (OCI).

Importance of ONDC

ONDC empowers merchants and consumers to build a single network.

Objective of ONDC:

  • fostering innovation and expansion,
  • Transforming all types of businesses ranging from retail goods, food items etc. to commuting.

In this, all e-commerce companies will operate using the same procedures. Hence, it will give a boost to small online retailers as well as new sellers stepping into this space. This will be possible through traceability, interoperability and inclusivity.

Source – The Hindu

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