Why is it in the News?

The ONDC Startup Mahotsav was held in New Delhi recently in collaboration between the Startup India initiative and the Open Network for Digital Commerce (ONDC).

About the Open Network for Digital Commerce (ONDC):

• The Open Network for Digital Commerce (ONDC) is a network based on open protocol and will enable local commerce across segments, such as mobility, grocery, food order and delivery, hotel booking and travel, among others, to be discovered and engaged by any network-enabled application.
• The platform aims to create new opportunities, curb digital monopolies support micro, small and medium enterprises and small traders and help them get on online platforms.
• It is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.

Features of ONDC:

• ONDC, a UPI of e-commerce, seeks to democratise digital or electronic commerce, moving it from a platform-centric model to an open network.
  • Through ONDC, merchants will be able to save their data to build credit history and reach consumers.
• The proposed government-backed platform aims to create a level playing field for e-commerce behemoths such as Amazon, Flipkart, and offline traders who have been crying foul at the unfair trade practices of these e-tailers.
  • The platform will also be compliant with the Information Technology Act, 2000 and designed for compliance with the emerging Personal Data Protection Bill.
• In this system, ONDC plans to enable sellers and buyers to be digitally visible and transact through an open network, regardless of what platform or application they use.
  • It will also empower merchants and consumers by breaking silos to form a single network to drive innovation and scale, transforming all businesses from retail goods, food to mobility.
• The new framework aims at promoting open networks developed on open-sourced methodology, using open specifications and open network protocols independent of any specific platform.
• It is expected to digitise the entire value chain, standardise operations, promote inclusion of suppliers, derive efficiencies in logistics and enhance value for consumers.
• According to the government's official statement, ONDC shall take all measures to ensure confidentiality and privacy of data in the network.
  • ONDC shall not mandate the sharing of any transaction-level data by participants with ONDC.
  • It will work with its participants to publish anonymised aggregate metrics on network performance without compromising on confidentiality and privacy.
• Presently, ONDC is in its pilot stage and the government has set up a nine-member advisory council, including Nandan Nilekani from Infosys and National Health Authority CEO R S Sharma, on measures needed to design and accelerate the adoption of ONDC.