Open Network for Digital Commerce in India: Past, Present, and Future

Abstract

Abstract The primary objective of this article is to provide a comprehensive analysis of the open network for digital commerce (ONDC), an innovative initiative by the Indian government. The study aims to explore the potential impact of ONDC on India’s digital commerce sector, focusing on how it seeks to democratize digital commerce and create an environment characterized by fair competition, innovation, and inclusivity. Our methodology involves an extensive review and thematic analysis of relevant literature. This approach includes a detailed examination of ONDC’s core objectives, its technological underpinnings, and the role of the government in facilitating its growth and adoption. The study is designed to provide a holistic view of ONDC, considering various aspects such as technology, policy, and market dynamics. The analysis suggests that ONDC could revolutionize India’s digital commerce ecosystem. Key findings indicate that ONDC can enhance interoperability, empower small businesses and local retailers, and diversify consumer choices. The initiative’s reliance on existing digital frameworks like the Unified Payments Interface and the Data Empowerment and Protection Architecture is crucial in streamlining transactions and bolstering data security. However, the realization of ONDC’s full potential is contingent upon its effective implementation and widespread acceptance among stakeholders. This study contributes to the existing body of knowledge by comprehensively analysing ONDC, a relatively new and underexplored area in digital commerce research. It offers original insights into the initiative’s potential to transform India’s digital commerce landscape. The article also identifies gaps in current research, such as the limited scope of existing studies, the absence of primary data, and the influence of external variables. It suggests avenues for future research, including longitudinal studies, international comparisons, and primary data collection, to understand ONDC better and its long-term impact on India’s digital commerce sector.