ONDC Could Unlock an Additional GMV Potential of ₹3.75 Lakh Crore Over the Next 5 Years

New Delhi, Jan 4 (NationPress) The Open Network for Digital Commerce (ONDC) is set to create an additional market opportunity estimated at ₹3.75 lakh crore in gross merchandise value (GMV) within the next five years. This initiative aims to tackle the challenges posed by monopolistic practices and to empower smaller players in the market, as stated by the government on Saturday.

ONDC has the potential to change the e-commerce landscape significantly. This initiative is more than just a technological framework; it embodies a vision for a fairer digital future.

Initiated in April 2022, ONDC focuses on facilitating open networks for the exchange of goods and services across digital platforms. It operates on an open-sourced methodology that utilizes open specifications and network protocols, independent of any specific platform.

With an authorized capital of ₹500 crore, various public and private banks and financial institutions have contributed equity to ONDC, according to the Ministry of Commerce and Industry.

Micro, Small, and Medium Enterprises (MSMEs) are crucial to India’s economy. ONDC offers these enterprises a unique chance to address challenges such as inadequate digital reach and elevated platform costs.

The Ministry of MSME recently introduced a sub-scheme called “MSME Trade Enablement and Marketing Initiative” (MSME-TEAM Initiative), which aims to assist five lakh MSMEs in onboarding the ONDC platform.

Out of the total five lakh MSMEs targeted, two and a half lakh are expected to be women-owned businesses. This scheme is applicable from 2024 to 2027.

On Thursday, Prime Minister Narendra Modi remarked that ONDC has empowered small businesses and transformed the e-commerce sector.

“ONDC has played a critical role in empowering small enterprises and transforming e-commerce, thus significantly contributing to growth and prosperity,” stated PM Modi in a post on the social media platform X.

In the past three years, ONDC has recorded over 150 million transactions. The platform boasts more than 700,000 sellers and service providers, with sellers operating from over 600 cities and towns. Consumers have transacted through the network from more than 1,100 cities and towns.

Moreover, over 7,000 farmer-producer organizations are associated with the platform, representing 35 lakh farmers.