Question
Which one of the following best describes the key objective of India's 'Open Network for Digital Commerce' (ONDC) initiative ?
Attempt this previous-year question. The correct option stays hidden until you choose.
Which one of the following best describes the key objective of India's 'Open Network for Digital Commerce' (ONDC) initiative ?
Pick an option to check yourself.
Approach: Understand ONDC as a 'network of networks' designed to democratize the digital marketplace rather than a single platform or a regulatory tool.
- **Correct Answer:** (c) To break the dominance of large e-commerce platforms by enabling interoperability across networks.
- **Concept:** ONDC is an open-source protocol (not a platform) that allows different buyer apps (e.g., Paytm, Pincode) and seller apps (e.g., Mystore, SellerApp) to interact seamlessly.
- **Objective:** By creating a common language for digital commerce, it removes the 'walled garden' approach of current e-commerce giants, allowing small businesses to reach a wider customer base without being locked into a single proprietary ecosystem.
- **Why other options are incorrect:**
- **A:** ONDC is a non-profit initiative aimed at fostering competition, not government surveillance or control of transactions.
- **B:** It is designed to empower existing players and onboard new ones, not to replace private e-commerce companies.
- **D:** While ONDC supports UPI, it is payment-agnostic and does not mandate any specific payment gateway; its core focus is on the unbundling of the e-commerce supply chain (discovery, ordering, and fulfillment).
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