Lok Sabha Question No. 5664 (UNSTARRED), answered on 2022-04-06
Subject: ONDC Project
Ministry: COMMERCE AND INDUSTRY
Asked by: Nayab Singh

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA

UNSTARRED QUESTION NO. 5664. TO BE ANSWERED ON WEDNESDAY, THE 6 TH  APRIL, 2022.

## ONDC PROJECT

## 5664.  SHRI NAYAB SINGH: SHRI GYANESHWAR PATIL:

Will the Minister of COMMERCE AND INDUSTRY

## वाणिज्य एवं उद्योग मंत्री

- (a) the achievements of the Government and the policy framed regarding the new Open Network for Digital Commerce (ONDC) project;
- (b) the  manner  in  which  open  network  is  likely  to  empower  small  business  by adopting e-commerce;
- (c) whether the Government proposes to ensure that the consumers of the local areas actively participate for the convenience of the small traders; and
- (d) if so, the details thereof?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

(a): Open  Network  for  Digital  Commerce  (ONDC)  is  an  initiative  aiming  at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks. ONDC is to be based on open-sourced methodology,  using  open  specifications  and  open  network  protocols independent of any specific platform.

The foundations of ONDC are to be open protocols for all aspects in the entire  chain  of  activities  in  exchange  of  goods  and  services,  similar  to hypertext transfer protocol for information exchange over internet, simple mail transfer protocol for exchange of emails and unified payments interface for payments.

These  open  protocols  would  be  used  for  establishing  public  digital infrastructure in the form of open registries and open network gateways to enable exchange  of  information  between  providers  and  consumers. Providers and consumers would be able to use any compatible application of  their  choice  for  exchange  of  information  and  carrying  out  transactions over ONDC.

be pleased to state:

Thus, ONDC goes beyond the current platform-centric digital  commerce model  where  the  buyer  and  seller  have  to  use  the  same  platform  or application to be digitally visible and do a business transaction.

- (b): ONDC protocols would standardize operations like cataloguing, inventory management, order management  and  order fulfilment. Thus, small businesses would be able to use any ONDC compatible applications instead of  being  governed  by  specific  platform  centric  policies.  This  will  provide multiple options to small businesses to be discoverable over network and conduct business. It would also encourage easy adoption of digital means by those currently not on digital commerce networks.
- (c) & (d): ONDC is expected to make e-Commerce more inclusive and accessible for consumers.  Consumers  can  potentially  discover  any  seller,  product  or service  by  using  any  compatible  application  or  platform,  thus  increasing freedom of choice for consumers. It will enable the consumers to match demand with the nearest available supply. This would also give consumers the liberty to choose their preferred local businesses. Thus, ONDC would standardize operations, promote inclusion of local suppliers, drive efficiencies in logistics and lead to enhancement of value for consumers.

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