Lok Sabha Question No. 2545 (UNSTARRED), answered on 2021-08-04
Subject: Open Network for Digital Commerce
Ministry: COMMERCE AND INDUSTRY
Asked by: Diya Kumari

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 2545. TO BE ANSWERED ON WEDNESDAY, THE 4 TH  AUGUST, 2021.

## OPEN NETWORK FOR DIGITAL COMMERCE

## 2545.  MS. DIYA KUMARI:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य  एवं उद्योग मंत्री

- (a) the  salient  features  of  new  Open  Network  for  Digital  Commerce  (ONDC) project;
- (b) the manner in which its open network is likely to empower small businesses by the adoption of e-commerce;
- (c) whether the Government proposes to ensure that consumers from local areas can also actively participate; 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 opensourced 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.

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): Yes, Sir.

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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