Open network for digital commerce: ONDC will provide equal opportunities to merchants, says Piyush Goyal
The Open Network for Digital Commerce (ONDC) will help “democratize e-commerce” in India so that millions of small mom-and-pop stores and retailers aren’t as extinguished as in the Western world, but they need to grow their businesses. get equal opportunity to do so. Commerce and Industry Minister Piyush Goyal said on Friday that through the use of digital technologies.
Goyal said that without an open platform like ONDC, the existence of small retailers may be at risk from the growing influence of large e-commerce companies, which are indulging in several unregulated practices and are being probed by the Enforcement Directorate. He did not name any player.
In late April, the government started the pilot phase of ONDC, a UPI-type protocol, in Delhi, Bangalore, Bhopal, Coimbatore and Shillong. From around 150 vendors during the pilot project’s rollout, ONDC is aiming to add around 30 million vendors spread across 100 cities in six months.
Highlighting the plight of small retailers in some developed countries, Goyal said: “We do not want this to happen in India. We want them (small retailers) to have the opportunity to use technology to serve our consumers, we want them to have an equal opportunity to enjoy the benefits of the digital world, we want their data to be secure .
ONDC generally provides a set of protocols and a technology-based solution that allows everyone to trade on a common platform. Goyal said that on online marketplaces of large e-commerce companies, some sellers are given preference over others. This leads to exploitation of many sellers. Though there will be no favourite, in the ONDC structure, it will provide equal opportunities to all, he asserted.
In December 2020, the Ministry of Commerce and Industry wrote to the Reserve Bank of India (reserve Bank of India) and to take “necessary action” against the ED on the allegations leveled by a prominent traders’ body heroine, Flipkart and Walmart related violations of FDI and other relevant regulations. For their part, the e-commerce players have denied the allegations and said that they follow the relevant rules.