Key facts
- National Traders' Welfare Board endorses ONDC for small traders
- ONDC allows sellers to transact without platform commission lock-in
- Small traders have flagged high fees on existing e-commerce platforms
- Push targets semi-urban and rural markets with growing smartphone use
India's National Traders' Welfare Board has formally backed a drive to bring small traders onto the Open Network for Digital Commerce, lending institutional weight to the government-backed platform's push to compete with established e-commerce giants.
ONDC, launched as an open protocol to democratise digital commerce, has struggled to gain rapid traction among the country's vast base of small retailers, kirana stores and street vendors — despite government backing. The platform's promise is significant: it allows sellers to list products and transact with customers across multiple buyer apps without being beholden to any single platform's terms, fees, or algorithmic preferences.
The National Traders' Welfare Board's endorsement signals that organised trade bodies see ONDC as a genuine alternative to the duopoly-like grip that large e-commerce platforms currently hold over online retail. Small traders have long complained about high commission rates, return policies that favour buyers, and ranking systems that disadvantage independent sellers.
For ONDC, an endorsement of this nature could accelerate onboarding efforts in semi-urban and rural markets, where physical trade remains dominant but smartphone penetration is creating new digital commerce opportunities. The Board is expected to use its network to run awareness and training programmes.
The broader policy significance is clear: India is trying to ensure that the benefits of digital commerce diffuse widely across its economy, rather than concentrating in the hands of a handful of large platforms.