Indian Government

Indian Government to soon launch an Open Network for Digital Commerce

Business Government Technology

The Indian government is planning to build an Open Network for Digital Commerce to challenge Amazon and Walmart’s dominance in the Indian market. Buyers and sellers will be able to engage and trade online using the ONDC platform. The introduction of the ONDC platform follows an antitrust raid by India’s antitrust commission on Amazon’s local vendors and Walmart’s Flipkart. The business was accused of breaking the law.

The Indian government hopes to create an open platform for the exchange of products and services over electronic networks with the introduction of ONDC. An official stated on Thursday that the open network platform would be launched in five cities: Delhi NCR, Bengaluru, Bhopal, Shillong, and Coimbatore. Later on, it would be spread to additional cities.

According to a report, the Modi government and its major supporters have long claimed that Amazon and Flipkart’s predatory pricing benefits just a few big vendors. The firms, on the other hand, have always claimed that they follow the Indian government’s laws.

The government’s ONDC platform has yet to elicit a response from Amazon and Flipkart. According to the study, India’s ONDC strategy intends to enrol 30 million online dealers and 10 million online merchants. By August, the goal is to have covered at least 100 cities and towns. The government will concentrate on applications for buyers and dealers that are available in local languages. Small businesses and rural customers will be highlighted in the applications.

The government stated in a document that retailers and venture capital firms had backed the ONDC idea. State Bank of India, ICICI Bank, and Bank of Baroda have already pledged 2.55 billion rupees in total investments.

According to a Reuters investigation last year, Amazon was accused of providing a certain set of vendors on its platform preferential treatment for years and using them to circumvent Indian rules. The charges were disputed by Amazon.