Sun Jul 11 2021
India to make steps towards an open-source market for e-commerce.
Like a tale of David and the Goliath, India takes another step towards its ‘Atmanirbhar Bharat’ policy of a ‘self-reliant India’, with the national government intent on becoming a service provider to keep smaller e-commerce businesses profitable.
How is this plan going to be executed?
By creating a giant, open-source network to bolster India’s small business to compete against giant corporations like Amazon and Shopify.
The creation of an ‘Open Network for Digital Commerce’ (ONDC), aims to widen the market scope of e-commerce available and avoiding giants like Amazon.com, Shopify, and even homegrown Flipkart from dominating the market.
Some people of note who have been appointed to the nine-member advisory board include Infosys non-executive chair Nandan M. Nilekani, Digital India co-founder and head Shri Arvind Gupta, and representatives from venture capitalists.
It seems like a long, overgrown road ahead for them as no timeframe has been suggested for the ONDC’s delivery, and the exact mission remains a mystery. However, great things can be done with a slingshot and a bit of technical knowledge.
However, Kumar Rajagopalan, CEO of Indian Retailers Association, compares the ONDC to India’s Unified Payments Interface (UPI), a platform operated by India’s Reserve Bank which enables real time payments among banks and payment schemes like Google Pay.
The UPI was developed as a way to improve access to banking services, and the ONDC has been pitched as easing access to e-commerce services for India’s myriad small businesses.
The creation of the ONDC is being led by Quality Council of India; a standards body that works with industry groups to define and implement best practise across India’s private and public sectors. It is hoped it will create a national platform, and one that can integrate closed platforms into a giant national marketplace and make the lot open source.
ONDC is expected to digitize the entire value chain, standardize operations, promote inclusion of suppliers, derive efficiencies in logistics and enhance value for consumers
Sun Jul 11 2021