Ashish Marathe
Assistant Professor IMDR
India's digital landscape has witnessed remarkable milestones in recent years, including the Aadhar card, Jan-dhan accounts, UPI, and the CoWIN app. Amidst these successes, a new star has emerged, transforming the e-commerce realm: the Open Network for Digital Commerce (ONDC), often dubbed the UPI of e-commerce.
Empowering the Digital Economy
ONDC, a non-profit organization supported by the Government of India, aims to bridge the gap in India's e-commerce penetration, currently hovering at around 4.5-5%. Unlike existing platforms, ONDC doesn't seek to compete; instead, it strives to expand the market, making digital commerce accessible to everyone. It operates as a network of networks, liberating buyers, sellers, logistics partners, and technology service providers from platform constraints. Through its decentralized approach, ONDC fosters participation, development, and empowerment, especially focusing on Micro, Small, and Medium Enterprises (MSMEs).
The ONDC Framework: A Paradigm Shift
At the core of ONDC lies the Beckn protocol, emphasizing interoperability—a missing link in the digital commerce space. Beckn, a machine-readable language, enables seamless interaction and discovery between platforms. This two-sided network comprises buyer apps, seller apps, payment gateways, technology companies, and various service providers, ensuring a comprehensive ecosystem for digital transactions.
Expanding Horizons with ONDC
ONDC operates across eight domains, including electronics, home and kitchen, financial services, mobility, fashion and footwear, beauty and personal care, food and beverage, and grocery. Notably, ONDC facilitates not only Business-to-Consumer (B2C) but also Business- to-Business (B2B) transactions, catering to raw material procurement, institutional buying, and distribution businesses.
The Road Ahead: Transforming E-Commerce Dynamics
Termed the next UPI, ONDC faces unique challenges due to the intricate integration of physical and digital realms. While UPI had a fixed number of banks onboard, ONDC must welcome millions of enterprises, emphasizing the sheer scale of its ambition. The platform promises a 100x increase in choices for both buyers and sellers, aiming to revolutionize inter- regional trade through voice-based commerce. Moreover, ONDC's focus on rationalizing marketing and logistics costs stands to reshape the economic landscape of e-commerce.
Conclusion: A Global Innovation
In the ever-evolving landscape of digital commerce, ONDC shines as a pioneering Indian innovation. As it continues to evolve and expand, ONDC's impact is not confined to India alone; it has the potential to redefine global e-commerce paradigms. By fostering inclusivity, interoperability, and innovation, ONDC paves the way for a future where digital commerce knows no bounds, empowering businesses and consumers alike.
References:
- [ONDC Official Website](www.ondc.org)
- YouTube Interviews of Mr. Nandan Nilekani and Mr. Thampy Koshy.
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