Lok Sabha Question No. 523 (UNSTARRED), answered on 2023-12-06
Subject: ONDC
Ministry: COMMERCE AND INDUSTRY
Asked by: Midhun Reddy

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

## LOK SABHA

## UNSTARRED QUESTION NO. 523. TO BE ANSWERED ON WEDNESDAY, THE 06 th  DECEMBER, 2023.

## ONDC

## 523.   SHRI P.V. MIDHUN REDDY:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government has launched the Open Network for Digital Commerce (ONDC);
- (b) if so, the details thereof including the number of users as of date;
- (c) whether it is true that ONDC is currently operational in a few select cities;
- (d) if so, the details thereof and the reasons for the same;
- (e) whether the Government proposes to expand ONDC to the rest of India;
- (f) if so, the tentative timeline of expansion;
- (g) whether the Government has put in any monitoring and evaluation mechanism for ONDC; and
- (h) if so, the details thereof and if not, the reasons therefor?

## 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) & (b): Yes, Open Network for Digital Commerce (ONDC) is an initiative of the Department for Promotion of Industry and Internal Trade  (DPIIT), Ministry of Commerce and Industry  aiming  at  promoting open networks for all aspects of the exchange of goods and services over digital or electronic networks.

The  Open  Network  for  Digital  Commerce  (ONDC)  is  a  first-of-its-kind,  global initiative  aimed  at  democratising  digital  commerce  in  India. ONDC is a public digital infrastructure, based on open-source   technology and is independent of any specific platform. ONDC is not a  platform, but a network enabling unbundling and interoperability.

Being a network, ONDC does not directly onboard any sellers or directly provide access  to  buyers.  ONDC  is  a  network  of  independent  Buyer                Apps and Seller Apps conducting transactions enabled through a common language of commerce which is compliant with ONDC protocol.

| (c) & (d):   | ONDC is currently operational in more than 500 cities and towns across India. The geographic coverage of ONDC is determined both by the capability of its Network participants and the independent business decisions of merchants on boarded by the Network participants.                                                                                                                                                                                                                                                                                              |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (e) & (f):   | ONDC strives to expand to all corners of the country by giving special attention and providing handholding to undigitized sellers. The expansion of ONDC to all other areas of the country is determined by the capability of it's Network participants and the independent business decisions of merchants onboarded by the Network participants.                                                                                                                                                                                                                      |
| (g) & (h):   | ONDC is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, aiming to democratise e-commerce in the country. ONDC has been established as a section- 8 not for profit company. ONDCBoard includes the participation of one Government nominee from DPIIT, Ministry of Commerce & Industry, one Government nominee from Ministry of Micro, Small and Medium Enterprises and one Government nominee from Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution. |

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