India launches pilot phase of open e-commerce network

Tags: National Economics/Business

India has launched the pilot phase of Open Network for Digital Commerce (ONDC) in five cities.

  • ONDC is a UPI-type protocol and the entire exercise is aimed at expanding the reach of the fast-growing e-commerce sector to far-flung areas, helping small retailers and reducing the dominance of online giants.

  • The initiative also aims to curb the dominance of the two big multinational e-commerce players, who control more than half of the country's e-commerce business.

  • ONDC is a set of standards for voluntary adoption by vendors or logistics providers or payment gateways.

  • The pilot phase aims to connect 150 retailers across five cities – Delhi NCR, Bengaluru, Bhopal, Shillong and Coimbatore.

  • Presently 80 firms are working with ONDC and they are in various stages of integration.

  • These companies are building their apps for sellers, buyers, logistics or payment gateways.

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