Before the One Nation One Digital Platform (ONDC) was introduced, small and micro enterprises faced several challenges. They didn’t have the resources or technical knowledge to adopt digital technologies, online presence or social media presence, etc. Even access to affordable financing options such as loans or investment opportunities was often limited for them. Small and micro enterprises frequently lacked access to data and analytics that could help them make informed business decisions. This made it challenging to identify market trends, understand customer behaviour, and optimise their operations. The introduction of ONDC aimed to address many of these challenges by providing a unified digital platform where small and micro enterprises could easily establish their online presence, access financing, utilise digital marketing tools, and leverage business intelligence to make data-driven decisions. ONDC aims to produce new openings, check digital monopolies, and support micro, small and medium enterprises and small dealers and help them to get on online platforms. This platform also emphasises data empowerment and privacy. It allows consumers to retain control over their data, icing translucency and consent-based data sharing. It’s an action of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry. The Indian government believes that the preface of ONDC will change the digital geography of Indian e-commerce by barring the monopoly of giant crucial players like Amazon, Walmart, and Myntra in the digital e-commerce arena.
Let’s see why India eagerly anticipates the implementation of ONDC and explore the benefits it offers to both customers and organisations.
Why India Looks Forward to ONDC:The Open Network for Digital Commerce holds the potential to reshape India’s digital landscape by fostering a more open inclusive and competitive business environment. Here are some reasons why India eagerly anticipates the implementation of ONDC:
Promoting Fair Competition: ONDC aims to mitigate monopolies, unfair practices and restrictive policies imposed by dominant players. By fostering a level playing field it promotes healthy competition resulting in broader choices, better services and competitive pricing for consumers.
Consumer choice and protection: ONDC intends to enhance consumer choice by providing a wide range of products and services offered by various e-commerce players. It also seeks to strengthen consumer protection measures by implementing transparent and standardised practices for digital commerce.
Boosting Entrepreneurship and Innovation: ONDC fosters an ecosystem that encourages startups and small businesses to thrive. It provides equal opportunities for businesses of all sizes to participate enabling them to leverage digital platforms more effectively to reach and serve customers.
Strengthening Data Privacy and Security: ONDC addresses concerns related to data privacy and security by emphasising the individual’s ownership of their data. It provides users with greater control over their personal information, enhancing trust in digital transactions and services.
Interoperability and collaboration: The ONDC initiative promotes interoperability among various e-commerce platforms and services. This encourages collaboration and partnership among different stakeholders leading to the development of a robust and interconnected digital commerce ecosystem.
Driving Digital Inclusion: ONDC aims to bridge the digital divide by ensuring that the benefits of digital commerce reach every corner of India. By enabling interoperability and accommodating diverse payment systems and languages it empowers citizens regardless of their location or background to participate in the digital economy.
Benefits of ONDC for Customers: ONDC brings several advantages to customers in enhancing their digital commerce experience:
- Enhanced Choice and Convenience: ONDC breaks barriers by enabling customers to access a wide variety of goods and services from multiple platforms through a unified interface. This streamlines the shopping experience, saving time and effort for customers.
- Competitive Pricing: Increased competition due to ONDC fosters pricing transparency and helps prevent price manipulation. Customers can compare prices across platforms ensuring they get the best value for their money.
- Data Privacy and Protection: ONDC prioritises user consent and data protection ensuring that customers’ personal information is safeguarded. It establishes strict guidelines for data handling, giving customers peace of mind when engaging in digital transactions.
- Innovation and Customisation: ONDC opens avenues for businesses to tailor their offerings to meet customer needs. This leads to personalised recommendations offers and services enhancing the overall shopping experience.
Benefits of ONDC for Organisations:
ONDC offers several advantages to organisations creating a more conducive digital commerce ecosystem:
- Expanded Consumer Base: ONDC allows businesses to tap into a broader consumer base by establishing interoperability reaching customers across multiple platforms and devices. This helps organisations expand their market reach and grow their customer base.
- Reduced Digital Infrastructure Costs: Through ONDC organisations can leverage existing digital infrastructure and avoid redundant investments. This reduces operational expenses enabling businesses to allocate resources more efficiently.
- Collaboration and Partnerships: ONDC fosters collaboration between businesses enabling strategic partnerships and joint ventures. This opens avenues for innovative knowledge sharing and collective growth.
- Regulatory Compliance: ONDC harmonises regulations and guidelines across platforms, reducing compliance complexities for organizations. This facilitates smoother operations and promotes transparency in digital commerce.
The advent of ONDC in India heralds a new era of digital commerce offering numerous benefits for both customers and organisations. By promoting fair competition, enhancing customer choice and strengthening data privacy ONDC strives to create a level playing field and foster innovation. It is an exciting opportunity that holds immense potential to transform the digital landscape in India driving economic growth. India looks forward to the implementation of ONDC as it aligns with the country’s vision of promoting fair inclusive and transparent digital commerce practices and it has the potential to revolutionise the digital economy in India.