What is Govt’s Open Network for Digital Commerce and Why Microsoft has joined it now? - Explained

Microsoft Joins Govt’s ONDC Network: Tech Giant Microsoft has joined the Government-backed Open Network for Digital Commerce. Let’s decode what is ONDC Network and its key features, how does it work and why has Microsoft joined it now? - Explained

What is Govt’s Open Network for Digital Commerce and Why Microsoft has joined it now?
What is Govt’s Open Network for Digital Commerce and Why Microsoft has joined it now?

Microsoft Joins Govt’s ONDC Network: Tech Giant Microsoft has joined the Government-backed Open Network for Digital Commerce. ONDC project is a major technology network that is being developed to enable small merchants and mom-and-pop stores in parts of the country to use advanced technology to improve commerce. As per the statement issued by Microsoft, as part of the ONDC Network, it plans to develop social e-commerce which will allow small businesses to provide group buying along with a shopping app for Indian Consumers. Let’s decode what is ONDC Network and its key features, how does it work and why has Microsoft joined it now? - Explained

What is ONDC - Open Network for Digital Commerce?

Open Network for Digital Commerce, is a government backed project which aims at providing technology enabled solution to enable local commerce across different sectors. The network will enable small traders to expand their offerings across different sectors or segments including mobility, grocery, food order and delivery, hotel booking and travel, among others, to be discovered and engaged by any network-enabled application. The initiative is launched by Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.

One of the key objectives of ONDC is to provide technology platform to small business owners and create new opportunities of trade and commerce for them. Through this, the government plans to curb digital monopolies by supporting micro, small and medium enterprises and small traders and bringing them online.

ONDC Network - Key Features

The central premise for developing ONDC by the Government is to create and open technology network for small and micro business owners. ONDC will help micro, small and medium businesses to expand their online presence and reach more customers while also building a credit history and using data to take informed decisions. The key features of ONDC are as follows:

  • Enable Sellers and Buyers to be digitally visible and transact through an Open Network
  • Help bring out businesses and merchants out of silos and build a single network to drive commerce
  • Promote open network developed as per open-sourced methodology, using open specifications and open network protocols
  • End duopoly in e-commerce business by behemoths of Amazon and Flipkart
  • Digitize value chain across transaction chain for businesses, merchants and

How does ONDC Network work?

ONDC Network works as an intermediatory between buyers and sellers. The network will act as an interface and will host buyers and sellers. Currently, the buyer side interface is being managed by PayTM while the seller side interface is managed by GoFrugal and other such vendors

Upon deployment of ONDC, when a buyer searches for a particular item, it will connect them to ONDC network via their respective app. On the other end, sellers who have the item that the buyer is looking for will be featured through open interface as a list. From here, buyer can choose the item and place an order for the same while taking advantage of the open network developed as per open-sourced methodology, using open specifications and open network protocols. ONDC is also onboarding several logistics partners along with hosting service provides and resource planners to help promote ecommerce business through the open network.

Why has Microsoft Joined Govt’s Open Network for Digital Commerce?

ONDC Network has been under development for quite sometime now and Microsoft joining the ONDC bandwagon makes it one of the first international tech giants to do so. As part of ONDC, Microsoft plans to develop and introduce a social e-Commerce market through its app. As part of the network, the US-based tech giant will also launch a shopping app which will be developed exclusively for Indian customers and enable them to harness social circle to discover best prices among retailers and e-sellers.

With other major names including Dunzo for Business (D4B), Go Frugal, Paytm, Digit, PhonePe and Loadshare already on ONDC, Microsoft joining it will push the envelope of creating the “largest interoperable open platform in a bid to break e-commerce monopolies and democratize digital marketplace.”

Who else has joined the ONDC So Far?

Currently, several key partners have joined the ONDC network which is aimed at enhancing e-commerce business for small and marginal businesses. Apart from Microsoftl, which has joined the bandwagon now, several other key players have also partnered and joined ONDC. The key among them include:

Name

Role

Live categories

Live Cities

PayTM

Buyer

Grocery, Food & Beverage, Home & Decor

Bengaluru, New Delhi, Coimbatore, Bhopal, Shillong, Lucknow, Chennai, Kannur, Thrissur, Bijnor, Udupi, Chhindwara, Kolkata, Kancheepuram, Mannar, Ramnathapuram, Pune, Faridabad, Meerut, Mumbai, Kaup, Cuttack, Ernakulam, Theni, Kanpur, Chandausi, Jaipur

Digiit

Seller

Groceries

Bengaluru, Coimbatore, Kannur, Thrissur, Mannar

eSamudaay

Seller

Grocery, Food & Beverage

Bengaluru, Shillong, Lucknow, Bijnor, Udupi, Meerut, Kaup, Cuttack

Go Frugal

Seller

Groceries

Bengaluru, New Delhi, Coimbatore, Bhopal, Lucknow, Chennai, Chhindwara, Kolkata, Kancheepuram, Ramnathapuram, Pune, Ernakulam, Theni, Kanpur, Chandausi, Jaipur

Growth Falcons

Seller

Food & Beverage

Bengaluru, New Delhi

Seller App

Seller

Grocery, Home & Decor

Bengaluru, New Delhi, Lucknow, Faridabad, Mumbai, Jaipur

Dunzo

Logistics

Hyperlocal

Bangalore, Pune, Gurgaon, Hyderabad, Delhi, Chennai, Noida, Mumbai, Kolkata

Loadshare

Logistics

Hyperlocal

Bengaluru, New Delhi

Take Weekly Tests on app for exam prep and compete with others. Download Current Affairs and GK app

एग्जाम की तैयारी के लिए ऐप पर वीकली टेस्ट लें और दूसरों के साथ प्रतिस्पर्धा करें। डाउनलोड करें करेंट अफेयर्स ऐप

AndroidIOS
Read the latest Current Affairs updates and download the Monthly Current Affairs PDF for UPSC, SSC, Banking and all Govt & State level Competitive exams here.
Jagran Play
खेलें हर किस्म के रोमांच से भरपूर गेम्स सिर्फ़ जागरण प्ले पर
Jagran PlayJagran PlayJagran PlayJagran Play