ONDC, MSME Mart To Empower Small Businesses In E-commerce Evolution

The Government's open e-commerce network, ONDC, is actively collaborating with the MSME Ministry to facilitate the onboarding of micro, small, and medium enterprises (MSMEs), said Union Minister of State for Commerce and Industry Som Parkash. The initiative involves utilizing existing seller applications and integrating with MSME Global Mart, a business-to-business portal operated by the National Small Industries Corporation (NSIC) under the MSME Ministry. MSME Mart has over 2 lakh MSMEs and aims to provide market access to these enterprises by showcasing their products and services online, connecting buyers and suppliers.

Parkash stated that ONDC is also working closely with industry associations such as the National Restaurant Association of India (NRAI) and the Federation of Hotel & Restaurant Associations of India (FHRAI) to onboard restaurants onto the network through various food aggregators. As of now, ONDC hosts over 59,000 food and beverage (F&B) sellers, and its network includes more than 2.3 lakh sellers and service providers, ranging from small businesses to large enterprises.

Challenging E-Commerce Monopoly

Launched in 2021, ONDC addresses the challenge of digital monopolies and aims to digitize the entire value chain, standardize operations, promote supplier inclusion, optimize logistics, and enhance value for consumers. E-commerce in India, which is likely to be worth USD 188 billion market by 2025 as per Grant Thornton, is currently led by Walmart’s Flipkart and Amazon India.

To facilitate the adoption of ONDC among small businesses, the Minister highlighted various initiatives, including awareness workshops conducted in collaboration with industry associations like RAI, PHDCCI, FICCI, NASSCOM, and FHRAI. The network has also launched a ‘Feet on Street’ program to educate sellers about the benefits of ONDC, along with a repository of educational content, including textual and video materials.

Supporting MSMEs

Consultancy firm RedSeer, in a report released on December 7, recognized ONDC as a potential disruptor in the e-commerce landscape, projecting a gross merchandise value of USD 250-300 billion by 2030. Additionally, a whitepaper titled Commerce@Bharat by Deloitte India in August emphasized ONDC's role in supporting and enabling India's MSME ecosystem by providing efficient and cost-effective solutions for demand and supplier connectivity. The paper highlighted the potential for MSMEs to expand their businesses through digital commerce, diverse logistics options, increased access to credit, and relatively low costs associated with using the ONDC network.

Conclusion

Looking ahead, the collaborative efforts between ONDC and the MSME Ministry signal a promising avenue for the growth of micro, small, and medium enterprises in the country. With a focus on digitization, standardized operations, and enhanced market access, ONDC is set to redefine the dynamics of the country's e-commerce market. The measures, including awareness workshops and industry partnerships, set the stage for a vibrant and inclusive future for the Indian business ecosystem.