Open Network for Digital Commerce (ONDC)

Open Network for Digital Commerce (ONDC)


  • Open Network for Digital Commerce (ONDC), is a private non-profit Section 8 company established by the Department for Promotion of Industry and Internal Trade (DPIIT) of Governmnet of India to develop open e-commerce.
  • It was incorporated on 31 December 2021 with initial investment from Quality Council of India and Protean eGov Technologies Limited (formerly NSDL e-Governance Infrastructure Limited).
  • ONDC is not an application, an intermediary, or software, but a set of specifications designed to foster open interchange and connections between shoppers, technology platforms, and retailers.
  • ONDC aims to help small retailers expand their business and reduce the dominance of e-commerce giants by building an open, interoperable network on which buyers and sellers can transact without being present on the same platform.

  • According to the Ministry of Commerce and Industry, ONDC offers small retailers an opportunity through an e-commerce system, where buyers will be able to purchase the products that are also sold on any other e-commerce platform.
  • Open Network for Digital Commerce (ONDC) is an initiative aiming at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks.
  • ONDC is to be based on open-sourced methodology, using open specifications and open network protocols independent of any specific platform.
  • The foundations of ONDC are to be open protocols for all aspects in the entire chain of activities in exchange of goods and services, similar to hypertext transfer protocol for information exchange over internet, simple mail transfer protocol for exchange of emails and unified payments interface for payments.
  • Providers and consumers would be able to use any compatible application of their choice for exchange of information and carrying out transactions over ONDC.

Syllabus: Prelims