OPEN NETWORK FOR DIGITAL COMMERCE IN INDIA: OPPORTUNITIES AND CHALLENGES
Abstract
India is one of the fastest-growing digital economies in the world, with a rapidly expanding e-commerce sector. However, the digital commerce ecosystem in India is still largely dominated by a few large players, with limited opportunities for small and medium-sized enterprises (SMEs) and individual sellers. To address this imbalance, the Indian government has recently announced plans to establish an open network for digital commerce (ONDC), which aims to provide a level playing field for all participants in the e-commerce ecosystem. In this paper, we analyse the opportunities and challenges of the proposed ONDC in India. We first review the current state of e-commerce in India and the factors contributing to the dominance of large players. We then discuss the potential benefits of the ONDC, including increased competition, lower costs, and greater access to markets for SMEs and individual sellers. However, we also highlight several challenges that must be addressed for the ONDC to be successful, including issues related to data privacy, interoperability, and governance. We argue that the success of the ONDC will depend on its ability to foster trust among all participants in the ecosystem and ensure a level playing field for all.
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