Review of Progress of ‘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.
- 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. The intention behind this is-
- 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
