The Economic Survey FY 2024-25 noted that Open Network for Digital Commerce (ONDC) is among the initiatives that is fostering inclusivity and equity in digital commerce, while thinking beyond traditional e-commerce models in the fields of logistics and financial services.
Pointing out that a few large e-commerce players with a platform-centric model of digital commerce were dominating the market, the Survey raised concerns over the impact on smaller sellers, such as local retailers, artisans, and MSMEs. It added that sellers often have to conform to terms and conditions, from customer data access to product visibility, reducing their market leverage and fostering dependence on these platforms. In this scenario, ONDC “represents a paradigm shift” by promoting a democratic and interoperable digital commerce ecosystem.
The network recorded more than 14 million transactions in November 2024 across over 1,100 cities. Over 7 lakh sellers and service providers are active on the network spread across more than 600 cities and towns across India. Over 190 network participants are live on the network. About 7,000 farmer producer organisations (FPOs), 400 self-help groups (SHGs), micro-entrepreneurs, and social sector enterprises have been onboarded on the network. Also, mobility transactions through the ONDC network is live in over 15 cities, with around 5.45 lakh taxi and auto drivers onboarded.
The Survey also stated that ONDC is scaling new frontiers by thinking beyond the traditional e-commerce business models. Viewing logistics as a service, ONDC is integrating hyperlocal and inter-city logistics service providers to ensure a seamless supply chain with unified first-mile, middle-mile, and last-mile connectivity across 1,200 cities, it added.
In financial services, the network has integrated with nine lending service provider apps and three lenders, to enhance accessibility and efficiency in credit services. “It integrates account aggregator for data, digilocker/ Aadhaar for KYC, eNACH/ eMandate for repayment and Aadhaar eSign for agreement signing. It facilitates low-cost distribution and innovation in financial products, enabling personal loans, health insurance, and mutual funds,” the Survey added.
The Survey also noted that, in a bid to enhance inclusion, it is expanding coverage of digital commerce. “In the retail category, the platform has seen over 4.4 crore orders transacted, across 814 districts involving 2.83 lakh sellers,” it noted. It also highlighted that ONDC in collaboration with Bhashini, an AI-driven language translation tool, has launched Saarthi, a reference application to assist businesses in creating their buyer-side apps.