A top government official stated on Thursday that the government’s goal is not to drive any e-commerce companies out of the market. Instead, the government is calling on all e-commerce players to be a part of the Open Network for Digital Commerce (ONDC) program.
The Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), Rajesh Kumar Singh, explained that the aim is to democratize e-commerce for Micro, Small, and Medium Enterprises (MSMEs) and smaller producers located in remote areas of the country, ensuring that they have an equal opportunity to compete.
Singh clarified to reporters that the government is not seeking to eliminate any e-commerce businesses or directly compete with any specific online portal or provider. Instead, the government’s approach is inclusive, with the goal of inviting all e-commerce players to join the network.
The statement holds importance as there were reports suggesting that prices of specific food items are notably lower on the seller apps participating in the ONDC initiative when compared to the prices offered by prominent food delivery service providers.
Read More: ONDC sparks price war, threatens Zomato and Swiggy dominance in food delivery space
According to Singh, the consumers would eventually profit from heightened competition in the market.
Singh highlighted that the government’s attention is not on reports of businesses facing a decline in profit margins. Instead, the goal is to foster healthy competition in the market, which may result in a decrease of profit margins that were artificially inflated due to a monopoly position.
Singh stated that the ultimate objective is to ensure that all businesses join and develop a public digital infrastructure, like the Unified Payments Interface (UPI), that is exclusive to India.
According to Singh, the plan is to establish a distinct public digital infrastructure for India that benefits everyone. This initiative aims to offer the highest quality of service at the most reasonable cost to all segments of society.
ONDC was established as a Section 8 company on December 31, 2021.
The ONDC is a DPIIT initiative aimed at providing a facilitative model for small retailers to leverage digital commerce. It is not a platform, application, intermediary, or software. Rather, it comprises a set of specifications aimed at promoting open, unbundled, and interoperable networks.
Additionally, Singh stated that there would be no dedicated funding or customized policies to promote the network.
He made this remark in response to a query about whether there are any plans to extend incentives, such as those provided to UPI, to ONDC.
“We want all e-commerce players to be part of this network,” Singh said.