Open Network for Digital Commerce (ONDC) is an Indian government-led initiative to promote open public digital infrastructure that connects buyers and sellers across e-commerce platforms. Launched in 2020 under India’s Ministry of Commerce and Industry, ONDC aims to foster open networks that provide equal opportunities to all stakeholders in India’s rapidly growing digital commerce ecosystem.
Understanding Interoperability
A vital objective of ONDC is to enable interoperability across diverse e-commerce channels and platforms. Currently, major platforms like Amazon, Flipkart, and others operate in silos, limiting options and increasing costs for buyers and sellers. ONDC as an open protocol will allow consumers to discover sellers, products, and services from any platform or application connected to the network.
- Example: A customer searching for electronics on an ONDC-enabled shopping app would be able to see relevant listings from sellers across Amazon, Flipkart, Meesho, Tata Cliq and more on a single interface. This levels the playing field by breaking down walled gardens and infusing open competition in e-commerce.
Empowering Inclusive Digital Commerce
By promoting open networks, ONDC seeks to drive inclusive digital transformation that uplifts small businesses, local shops, service agents, developers, and consumers alike.
- Small Enterprises: ONDC helps MSMEs expand their customer base across platforms at lower costs.
- Local Shops: Makes e-commerce participation viable for small retailers via apps.
- Service Agents: Increases income opportunities for delivery partners across platforms.
- Developers: Open protocols enable new solutions for digital commerce.
- Consumers: Broader choice of sellers and expanded affordability.
Future Roadmap
ONDC protocols were first launched in five Indian cities in September 2022. Over 190,000 orders worth $2.5 million in Gross Merchandise Value have been facilitated already by over 12,500 participating sellers.
| City | Sellers Onboarded | Transactions Enabled |
| Bengaluru | 3,250 | 82,500 |
| New Delhi | 5,200 | 63,000 |
| Shillong | 950 | 14,500 |
| Bhopal | 625 | 12,500 |
| Coimbatore | 1,450 | 32,000 |
The network aims to expand quickly to 100 cities with over 40 categories of products and services. By March 2025, ONDC planned to onboard 40 million sellers and 80 million buyers in India.
Strategic Objectives and Focus Categories
ONDC has set some core goals to guide development and drive mass adoption of open e-commerce:
- Reduce Digital Monopolies: Promote competition and break concentration of platform power to foster innovation.
- Logistics Integration: Seamless discovery and engagement of logistics providers for first mile pick-ups and last mile deliveries.
- Trust and Inclusion: Expand access and enable trust by connecting rural, women entrepreneurs and small businesses with the digital economy.
- Global Footprint: Take the open network beyond India to developing countries in Asia, Africa, and the Middle East where digital commerce is still emerging.
Key focus categories
The key categories where ONDC aims to drive rapid growth in open networks are:
- Grocery: Expanding online penetration by connecting neighborhood kirana stores
- Food Ordering/Delivery: Level playing field for standalone restaurants vis-à-vis Swiggy/Zomato
- Mobility: Enabling interoperable discovery and booking of ride-hailing services
- Travel/Hospitality: Integrating listings from MakeMyTrip, Goibibo along with direct hotel inventory
The ONDC Advantage for Digital Commerce
By cultivating open public digital infrastructure for e-commerce, India aspires to engineer an inclusive and progressive digital economy where small and large players co-exist to offer value to consumers.