Government Set to Pilot Phase of Open E-commerce Network
Recently the Central Government has started the pilot phase of Open Network for Digital Commerce (ONDC).
The ONDC initiative has been initiated by the Department for Promotion of Industry and Internal Trade. This is the first initiative of its kind on a global scale. It will pave the way for decentralization of digital commerce, and democratization to increase the reach of digital commerce.
The task of integrating e-commerce platforms has been entrusted to the Quality Council of India.
Key Features of ONDC-
It is a platform that will allow buyers and sellers to connect and transact with each other online.
Open Source Process/Software:
- Under this, the technology or code used for any process is made freely available for use, redistribution and modification by all.
- It aims to promote an open platform for all aspects of the exchange of goods and services.
- Just as UPI works in the digital payments space, ONDC will work in the e-commerce space.
Importance of ONDC-
- It will go beyond the existing platform-centric digital commerce model like Amazon etc. to provide more convenience.
- It is able to search for a seller, product or service using any compatible application or platform.
- This will enable us to link the consumer demand with the nearest available supply.
Some of its other benefits are as follows:
- It will standardize operations,
- Emphasize involvement of local suppliers,
- Increase efficiency in logistics and provide better value to consumers.
- India’s e-commerce sector is expected to grow from US$ 20 billion in 2020 to US$ 111.40 billion by 2025.
- It is growing at a compound annual growth rate (CAGR) of 24%.
Source – The Hindu