How ONDC is creating a level playing field in e-commerce

Unlike traditional closed platforms, ONDC enables an open, interoperable network that empowers businesses of all sizes, challenges big-tech dominance, and ensures greater accessibility and reach for small sellers through open-source architecture and fair digital commerce

India’s e-commerce ecosystem is undergoing a historic shift with the introduction of the Open Network for Digital Commerce (ONDC), a government-backed initiative designed to decentralize digital trade and empower small and medium businesses. With the digital economy evolving rapidly post-pandemic, ONDC aims to reshape how buyers, sellers, and service providers interact in the online marketplace.

The COVID-19 pandemic acted as a major catalyst for digital adoption across the world. In India, this transformation highlighted both the potential and pitfalls of platform-dominated commerce. While e-commerce flourished, it also revealed challenges such as limited seller visibility, high commissions, and monopolistic practices. Recognizing these issues, the Government of India—through the Department for Promotion of Industry and Internal Trade (DPIIT)—has launched ONDC to foster an open, interoperable, and inclusive digital commerce ecosystem.

Unlike traditional e-commerce platforms that lock buyers and sellers into closed systems, ONDC facilitates an open network where all participants—regardless of size—can interact seamlessly. By focusing on interoperability and open-source architecture, it aims to create a level playing field, breaking the dominance of big-tech platforms and ensuring better reach for small businesses.

Building an open digital framework for all

ONDC is not just another digital marketplace—it is an entirely new way of conducting commerce online. The network is designed to connect buyers, sellers, logistics providers, payment systems, and service partners in a unified yet decentralized digital infrastructure. Using open protocols, ONDC standardizes processes such as product listing, inventory management, order processing, and payment settlement.

This architecture significantly reduces the cost of doing business online, particularly for micro, small, and medium enterprises (MSMEs) that often struggle with the technological and financial barriers posed by traditional e-commerce models. Through ONDC, sellers can list products that become discoverable across any buyer-side app integrated with the network, greatly expanding their market visibility without platform exclusivity.

Currently, ONDC is being piloted in cities like Bengaluru, Delhi, Coimbatore, Bhopal, and Shillong, with an ambitious target to roll out in 100 cities this year. Over 30 major players—including Paytm, Reliance Retail, and Google—have shown interest in joining the network. This rapid adoption signals strong industry support and confidence in the model’s potential.

ONDC is also aligned with other national digital initiatives like the Unified Payments Interface (UPI) and the Open Credit Enablement Network (OCEN), aiming to create a fully integrated digital ecosystem for commerce, finance, and logistics.

Unlocking new possibilities in Indian e-commerce

The introduction of ONDC is seen by experts as a game-changer, not only for India but also as a global model for inclusive digital trade. It provides a transparent and competitive environment where sellers are no longer dependent on a single platform’s algorithm or policies. Consumers, on the other hand, benefit from wider choices, price transparency, and the ability to compare products across multiple vendors through a single interface.

Analysts project that ONDC could reach a Gross Merchandise Value (GMV) of USD 48 billion by 2028, and potentially surpass USD 350 billion by 2030. With over a million sellers and hundreds of millions of buyers expected to join the network, ONDC could become one of the world’s largest decentralized e-commerce ecosystems.

In addition to improving logistics and price discovery, ONDC offers major advantages such as improved discoverability, better access to digital tools for small sellers, and the elimination of deep discounting and predatory pricing by large platforms. It encourages a shift from platform-centric marketing to transaction-based commerce, promoting sustainable business models.