Q. Consider the following statements about Open Network for Digital Commerce (ONDC):
1. ONDC has been incorporated as a public sector, non-profit company to democratize e-commerce in India.
2. It was incubated by the Department for Promotion of Industry and Internal Trade (DPIIT) at the Quality Council of India.
Which of the statements given above is/are correct?
What is the background to ONDC?
- The fast-expanding digital economy has been one of the major supporting pillars of India’s growth in recent times. India has the world’s highest fintech adoption rate of 87%, as compared with the global average of 64%;
- 3 of the largest public digital platforms in the world are from India: Aadhaar (largest digital identity platform), Unified Payments Interface (UPI, largest digital payments ecosystem), and Co-Win (largest vaccination platform);
- Realizing the potential of digital space, the Government of India has launched the Open Network For Digital Commerce (ONDC) as a prospective alternative to dominant global giants (like Amazon and Walmart) in its fast-growing e-commerce market;
- The idea of ONDC was conceived during COVID when ensuring essential supplies across containment zones was found to be a challenge. Therefore a need was felt to alter the current digital commerce approach of ‘scaling what works’ to a new approach of ‘what works at scale’;
- On December 31, 2021, ONDC was incorporated as a private sector, non-profit (Section-8) company to democratize e-commerce in India and offer alternatives to proprietary e-commerce sites. It was incubated by the Department for Promotion of Industry and Internal Trade (DPIIT) at the Quality Council of India.
Source: EPIC June 2022