Lok Sabha Question No. 400 (UNSTARRED), answered on 2025-07-22
Subject: Open Network for Digital Commerce
Ministry: COMMERCE AND INDUSTRY
Asked by: Dr. D. Purandeswari

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

## LOK SABHA

UNSTARRED QUESTION NO. 400.

TO BE ANSWERED ON TUESDAY, THE 22 ND  JULY, 2025.

## OPEN NETWORK FOR DIGITAL COMMERCE

## 400.   DR. D. PURANDESWARI:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether the Open Network for Digital Commerce (ONDC) will lower the cost of customer acquisition and transaction processing for sellers and if so, the details thereof;
- (b) whether any steps planned to be taken under ONDC to break the dominance of large ecommerce platforms by enabling interoperability across networks and if so, the details thereof;
- (c) the details of the steps that will be taken to empower small businesses, retailers and local artisans to access the digital marketplace under ONDC;
- (d) the manner in which ONDC plan to bridge regional and linguistic gaps in digital commerce; and
- (e) the manner in which ONDC plan to increase options for buyers to a broader array of sellers?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a): Open Network for Digital Commerce (ONDC), a Section 8 company, is an initiative  of  the  Department  for  Promotion  of  Industry  and  Internal  Trade (DPIIT),  Ministry  of  Commerce  and  Industry,  aimed  at  promoting  open networks for all aspects of the exchange of goods and services over digital or electronic  networks.  ONDC  reduces  the  cost  of  customer  acquisition  and transaction processing for sellers by enabling a decentralized and interoperable network. ONDC is not an e-commerce platform or a marketplace but an open protocol on which platforms/marketplace can be built.

Unlike  conventional  e-commerce  platforms,  ONDC  fosters  direct  interactions between buyers and sellers across multiple platforms, reducing dependency on any single entity.

A seller  onboarded through any ONDC-compliant seller application becomes discoverable  to  all  ONDC-compliant  buyer  applications,  enhancing  market access and reducing the cost of customer acquisition. ONDC lowers the cost of customer acquisition through two key mechanisms:

- i. Increasing the customer pool - ONDC brings digitally underserved and unserved consumers into the e-commerce ecosystem, expanding the reach for sellers.
- ii. Leveraging  digital  platforms  with  existing  customer  pools -ONDC integrates with fintech, mobility, and other digital platforms that already  have  established  user  bases,  enabling  sellers  to  tap  into  a broader audience.

Further, competition among seller applications ensures that transaction fees remain  competitive  compared  to  the  high  commission  fees  charged  by traditional  e-commerce platforms.

The exact margin varies based on the network participants and their commercial terms.

- (b): ONDC is designed as an open network where any buyer or seller can transact without being restricted to a single platform. The key features include:
- i. Interoperability :  Sellers  onboarded  on  any  platform  within  the  ONDC network can be discovered by buyers on any other platform, reducing the dominance of a few large players.
- ii. Unbundling :  Unlike  conventional  e-commerce  models,  ONDC  allows different entities to specialize and focus on their niche proposition without worrying  about  having  to  bring together  the  entire value  chain  of commerce. This ensures  a competitive and diverse marketplace.
- iii. Increased  Competition :  The  decentralized  nature  of  ONDC  promotes competition  among  platforms,  driving  down  commissions  and  making digital commerce more viable for small and medium businesses.
- (c): Several ministries at the central and state levels are driving the adoption of ONDC to empower small businesses, retailers, artisans, and suppliers. Notable measures taken by various Ministries/Departments and State Governments are as under:

Initiatives taken by Central Government:

- i. The Ministry of Micro, Small and Medium Enterprises has launched Trade Enablement and Marketing (TEAM) scheme, which facilitates the onboarding  of  micro  and  small  enterprises  onto  ONDC  by  providing financial  assistance  for  onboarding,  cataloguing,  account  management, logistics, packaging material and design. Notably, half of these beneficiary Micro,  Small  and  Medium  Enterprises  (MSMEs)  will  be  women-owned enterprises.
- ii. eSaras.in,  the  e-commerce  platform  under  National  Rural  Livelihood Mission (NRLM) of Ministry of Rural Development, is live on ONDC - with

operations  through  a  central  warehouse  in  DELHI-NCR.  e-Saras  is integrated with ONDC with some 800+ handcrafted products made by Self Help Groups (SHGs) now available online.

Initiatives taken by State Governments:

- i. Himachal Pradesh: The state government, through its HimIra brand under Himachal  Pradesh  State  Rural  Livelihood  Mission  (HP  SRLM),  is facilitating the onboarding of local and indigenous products onto ONDC.
- ii. Andhra Pradesh: Implementing a comprehensive program to help small businesses, including SHGs and cooperatives, sell their products through ONDC.

Additionally, ONDC has taken several  measures  to  onboard  and  support local businesses and small sellers, including:

- i. Supporting a large network of startups and small entrepreneurs to build solutions for local businesses and small sellers to access and benefit from eCommerce.
- ii. Developing, supporting and disseminating Training and Capacity building programs for small businesses and local sellers to join and benefit from digital  commerce including 3000+ hours of virtual training on ONDC & 200+ hours of technical training through open digital sessions, attended by 50,000+ startups, students, business leaders etc.
- iii. ONDC has developed a Handbook to help sellers (especially first time sellers)  succeed  in  digital  commerce  in  14  languages  and  are  being distributed widely
- iv. ONDC is also actively working to onboard various SHGs, social sector sellers  and  micro-entrepreneurs  to  the  ONDC  network  with  the  aid  of ecosystem  partners  like  SIDBI,  NABARD  and  other  philanthropic  and developmental organizations.
- v. Common Services Centers have gone live on ONDC to connect villages in India to the national digital market.
6. (d): ONDC has  made  digital  commerce  accessible  across  India.  Various  steps taken by ONDC for making digital commerce more accessible are as under:
- i. ONDC  has  developed  a  multi-lingual  Seller  Handbook  to  help  sellers (especially first time sellers) succeed in digital commerce in 14 languages and are being distributed widely
- ii. ONDC  has  partnered  with  Bhashini  to  improve  app  development  and  ecommerce in Indic languages.
- iii. ONDC Sahayak - Whatsapp Bot 'ONDC Sahayak' launched in 5 languages, to be extended to 22 languages, to help sellers and buyers get information about ONDC.
- iv. ONDC-enabled  buyer  and  seller  applications  are  encouraged  to  provide interfaces in Indian languages to cater to diverse users.
- v. By allowing various digital commerce platforms to participate, ONDC facilitates regional businesses in connecting with customers without language barriers.

## (e):

ONDC increases options for buyers in the following ways:

- i. Enabling  a  wider  seller  base: Any  seller,  irrespective  of  platform  or location, can be discovered by buyers across multiple ONDC-compliant buyer applications.
- ii. Diverse  product  offerings: ONDC  brings  first-time  sellers  into  digital commerce, allowing small businesses, local artisans, and regional brands to  gain  visibility  alongside  large  enterprises,  expanding  the  range  of available products.
- iii. Competitive  pricing: Increased  seller  participation  enhances  price discovery, fosters competition, and ensures cost benefits for consumers.
- iv. Hyperlocal market access: ONDC enables local businesses and niche markets  to  reach  digital  buyers,  increasing  the  availability  of  regionspecific and specialised products.

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