ONDC Can Create Additional GMV Worth Rs 3.75 Lakh Crore In Next Five Years

The Open Network for Digital Commerce (ONDC), which has the potential to create a market opportunity to the tune of Rs. 3.75 lakh crore in additional gross merchandise value (GMV) in the next five years, is addressing the challenges of monopolistic practices and empowering smaller players, the government has said.

ONDC has the potential to transform the e-commerce landscape. The initiative is not just a technological framework but a vision for a more equitable digital future.

Launched in April 2022, ONDC is an initiative aiming at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks. It is based on open-sourced methodology, using open specifications and open network protocols independent of any specific platform.

With an authorised capital of Rs. 500 crore, several public and private banks and financial institutions have contributed equity to ONDC till now, according to the Ministry of Commerce and Industry.

Incidentally, Micro, Small, and Medium Enterprises (MSMEs) form the backbone of India’s economy.

ONDC provides them with a unique opportunity to overcome challenges such as limited digital reach and high platform costs.

The Ministry of MSME recently launched a sub-scheme “MSME Trade Enablement and Marketing Initiative” (MSME-TEAM Initiative), which aims at assisting five lakh MSMEs to onboard the ONDC platform. Of the five lakh MSMEs to be benefited, two and a half lakh MSEs would be women-owned businesses. The scheme is valid from 2024 to 2027.