**Executive Summary**
This document provides the answer to Unstarred Question No. 2721 regarding the role of the Open Network for Digital Commerce (ONDC). The question was addressed on December 16, 2025, by the Minister of State in the Ministry of Commerce & Industry. The response clarifies the ONDC's function in integrating small urban merchants and service providers, and outlines the number of vendors onboarded and the expected impact on competition, price transparency, and consumer choice.
**Key Points / Main Content**
* **ONDC's Role and Function:**
* ONDC creates an open e-commerce ecosystem, unlike traditional siloed platforms.
* Small businesses, local traders, and MSMEs are ensured fair, transparent, and non-discriminatory discovery.
* Open protocols ensure all sellers are equally visible, regardless of size or digital sophistication.
* Seller-side apps make catalogs discoverable to buyer-side apps, enhancing transparency and preventing biased listing.
* **Onboarding and MSME Support:**
* The Ministry of MSME's Trade Enablement and Marketing (TEAM) scheme supports the adoption of digital commerce.
* Support includes digital literacy, awareness, cataloguing, and onboarding.
* The scheme targets 50% of beneficiaries as women-led SMEs.
* **Vendor Numbers and Geographic Reach:**
* As of December 9, 2025, there are 1.16 lakh+ retail sellers live on ONDC.
* These sellers span over 630+ cities and towns across India.
* **Impact on Competition and Consumers:**
* ONDC lowers entry barriers for small and micro businesses by enabling interoperability.
* Increased competition in digital commerce results from multiple platforms offering the same products and services.
* Consumers benefit from greater price transparency, a wider selection of products/services, and more informed choices.
**Impact Analysis**
**Small and Micro Businesses (SMEs & MSMEs)**
* **Impact:** Increased access to the digital marketplace, reduced barriers to entry, and improved visibility. They can reach a wider customer base across multiple platforms, promoting growth and competitiveness.
* **Action Required:** Onboard onto the ONDC platform, leverage the digital literacy and support programs provided by the Ministry of MSME.
**Consumers**
* **Impact:** Enhanced price transparency, a wider selection of products and services, and increased availability of options from diverse geographic locations.
* **Action Required:** Utilize the ONDC platform to access a wider range of products and services, compare prices, and make informed purchasing decisions.
**Government (Ministry of Commerce & Industry, Ministry of MSME)**
* **Impact:** Fulfilment of policy objectives related to promoting digital commerce, supporting small businesses, and ensuring fair competition.
* **Action Required:** Continue to support and expand the ONDC platform, monitor its impact on the economy, and adjust policies as needed to maximize its benefits.
Key Entities Referenced
Open Network for Digital Commerce (ONDC): An open ecosystem promoting digital commerce by integrating small merchants and service providers, aiming for fair, transparent, and non-discriminatory discovery within emerging e-commerce environments.
Ministry of Commerce & Industry: The ministry responsible for examining and promoting the Open Network for Digital Commerce (ONDC) initiative.
Trade Enablement and Marketing (TEAM) scheme: A scheme under the Ministry of MSME promoting adoption of digital commerce by SMEs through the ONDC network.
Ministry of MSME: Parent Ministry of the Trade Enablement and Marketing (TEAM) scheme.
India: The country where the ONDC is being implemented, impacting various cities and towns.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE
LOK SABHA
UNSTARRED QUESTION NO. 2721.
TO BE ANSWERED ON TUESDAY, THE 16TH DECEMBER, 2025.
ROLE OF ONDC
2721. SHRI PRAVEEN KHANDELWAL:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
वाणिज्य एवं उद्योग मंत्री
(a) whether the Government has examined the role of Open Network for Digital
Commerce (ONDC) in integrating small urban merchants and service
providers, if so, the details thereof;
(b) the number of vendors onboarded from metropolitan business districts; and
(c) the expected impact on competition, price transparency and consumer choice?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI JITIN PRASADA)
(a): Open Network for Digital Commerce (ONDC), unlike traditional e- commerce
platforms that operate in silos, creates an open ecosystem where sellers can
reach customers across multiple platforms without being restricted by platform-
specific terms and conditions. ONDC plays a big part in ensuring that small
businesses, local traders and MSMEs are not digitally excluded in the emerging
e-commerce environments by providing a fair, transparent, and non-
discriminatory discovery within emerging e-commerce environments through
open protocols that make all sellers equally visible across network regardless
of size, scale or digital sophistication. Seller-side apps make their full
catalogues discoverable to all buyer-side apps, while buyer-side apps discloses
key parameters used for sorting or listing search results, enabling sellers to
understand and improve their ranking. Common open specifications adopted
by all network participants further enhance transparency and prevent opaque
or biased listing practices.
Further, Ministry of MSME’s Trade Enablement and Marketing (TEAM) scheme
promote adoption of digital commerce by SMEs, small sellers including Self
Help Groups (SHGs), Farmer Producer Organisation (FPOs), artisans, rural
entrepreneurs and local retailers through the ONDC. Under this scheme, these
small sellers are provided support in digital literacy, awareness, cataloguing,
and onboarding, with a focus on inclusivity by targeting 50% of beneficiaries as
women-led SMEs.(b): As of 9 December 2025, there are a total of 1.16 lakh+ retail sellers live on the
ONDC from over 630+ cities and towns across India. Metropolitan business
district-wise classifications of sellers is however not maintained.
(c): The ONDC network lowers entry barriers for small and micro businesses by
enabling interoperability across multiple buyer and seller-side applications,
thereby increasing competition in digital commerce. The presence of multiple
platforms offering the same products and services promotes greater price
transparency for consumers. Additionally, as sellers of different sizes and from
diverse geographies become accessible on the network, consumers benefit
from a wider selection of products and services, enabling more informed and
competitive choices.
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