ONDC has contributed to empowering small businesses and revolutionising e-commerce: Prime Minister

Prime Minister Narendra Modi has commended the Open Network for Digital Commerce (ONDC) for its transformative impact on India’s e-commerce ecosystem. In response to a post by Union Minister Piyush Goyal on X, Modi lauded ONDC for empowering small businesses and driving e-commerce growth, stating, “ONDC has contributed to empowering small businesses and revolutionising e-commerce, thus playing a vital role in furthering growth and prosperity.”

Union Minister Piyush Goyal highlighted the government’s vision for ONDC in his post, citing the platform’s remarkable growth since its launch in 2021. He noted that ONDC now has over 200 participants, encompassing more than 700,000 sellers and service providers across 600 cities in India. Goyal emphasized that ONDC has created a level playing field for small businesses, enabling them to compete effectively in the digital commerce landscape.

According to Goyal, consumers from over 1,110 cities and towns have used the ONDC network, generating more than 150 million transactions to date. This achievement underscores ONDC’s objective of democratising the e-commerce ecosystem by bridging the gap between buyers and sellers.

In a 2024 update, ONDC Chief Executive Officer Thampy Koshy projected that the platform would achieve 30-40 million monthly transactions by March 2025. As of November 2024, the network was facilitating 14.4 million transactions per month. The platform also expanded its reach by onboarding prominent startups, including unicorns such as Zerodha, EaseMyTrip, Cars24, Physics Wallah, PolicyBazaar, OfBusiness, WinZO, Livspace, and GlobalBees.

Despite its achievements, ONDC faces challenges in scaling up awareness and adoption. True Elements, a leading healthy breakfast and snack brand, began selling its products on ONDC in January 2023. Puru Gupta, Co-founder and CEO of True Elements, acknowledged an initial positive response but noted a decline in sales across categories in 2024. Comparing ONDC to other platforms, Gupta remarked that ONDC’s gross merchandise value remains significantly lower than competitors.

Janhavi Jaltare, the direct-to-consumer head at True Elements, also shared insights into ONDC’s strengths and challenges. While the platform provides brands with access to a broad audience at a lower cost, customer awareness of ONDC remains a major hurdle. She pointed out the need for increased marketing efforts to ensure consumers recognize and use ONDC’s services.

As ONDC continues to evolve, its potential to democratize digital commerce and drive small business growth holds promise for India’s rapidly growing e-commerce ecosystem. However, addressing challenges like awareness and scalability will be crucial for sustaining its momentum.