Context

• Transactions on Open Network for Digital Commerce (ONDC), a digital infrastructure launched in 2021 with the aim of democratizing digital commerce, crossed 70 lakh in April this year, according to the Department for Promotion of Industry and Internal Trade (DPIIT).

Key Points

• The Department for Promotion of Industry and Internal Trade (DPIIT) has announced that 12 Indian unicorn startups including EaseMyTrip, OffBusiness, Physics Walah and others have signed a Letter of Intent to join the Open Network for Digital Commerce (ONDC). The list also includes Livspace, GlobalBiz, Pristine Care, Cars24, Policybazaar, which were announced at the 'ONDC Startup Mahotsav', a first-of-its-kind event that brought together ONDC and Indian Unicorns on the same platform .
• Apart from this, more than 5 lakh sellers have been included on the platform.
• Over 70 per cent of which are small or medium-sized vendors and over 125 ecosystem stakeholders including startups, unicorns and businesses have signed letters of intent (LOI) to join ONDC.

 Digital Commerce

• ONDC serves as a leading digital infrastructure.
• It aims to democratize digital commerce in India.
• Startups can play an important role in the ONDC ecosystem by fostering innovation, promoting competition and enhancing consumer choice.
• Building a market is a challenge for startups that can be addressed through the ONDC platform as it lowers the entry-barriers in digital commerce, and all e-commerce is critical for large-scale businesses and especially small ones. Provides a level playing field to those who are digitally excluded.

 Important Facts For Exam

 ONDC

• The ONDC entity is a not-for-profit company incorporated under Section 8 of the Companies Act 2013.
• It manages and operates the ONDC network.
•  It is responsible for building and maintaining the underlying infrastructure as well as defining the rules of engagement and code of conduct for network participants through the ONDC Network Policy and the ONDC Network Participant Agreement.