Open Network for Digital Commerce (ONDC)

Open Network for Digital Commerce (ONDC)

Subject – Economy

Context – ONDC components, including dynamic pricing to help cut cost of doing biz: DPIIT Secy

Concept –

• 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 and by supporting 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.
• According to the ministry, ONDC is expected to digitise the entire value chain, standardise operations, promote inclusion of suppliers, derive efficiencies in logistics, and enhance value for consumers.
• In simple words, the ONDC initiative aims to promote open networks for all aspects of the exchange of goods and services over digital or electronic networks. ONDC will work for both products and services.
• ONDC is globally first-of-its-kind initiative that aims to democratise digital commerce, moving it from a platform-centric model to an open-network. “As UPI is to the digital payment domain, ONDC is to e-commerce in India.”
• ONDC will enable, buyers and sellers to be digitally visible and transact through an open network, no matter what platform/application they use.
• ONDC will 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.

How will ONDC function?

• The Centre has laid down a detailed procedure for the functioning of the open network which primarily focuses on ensuring confidentiality and privacy of data in the network.
• It shall not mandate sharing of any transaction-level data by participants with ONDC and work with them to publish anonymised aggregate metrics on network performance without compromising on confidentiality and privacy.
• ONDC will be compliant with the information technology act, 2000 and designed for compliance with the emerging personal data protection bill.
• The government also plans to establish an independent regulatory authority for e-commerce like Sebi.
• The advisory council on ONDC was constituted by the Centre on July 5. It is take over as a guide and mentor in mentor to design, implementation and national rollout of ONDC.