ONDC: Disrupting India`s e-Commerce Space through an Open Network Model?
| Case Code: ITSY131 Case Length: 15 Pages Period: 2016-2021 Pub Date: 2022 Teaching Note: Available |
Price: Rs.400 Organization: ONDC Industry: Retailing Countries: India Themes: Digital Marketplace, Digital Ecosystem, Digital Marketplace,Digital DisruptionInnovation |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Government Rules and Regulations
The first ever law passed by the Government of India on e-commerce was the Information Technology (IT) Act 2000. This was an enactment to bring into effect the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce, 1996. The main aim of the IT Act was to provide legal recognition to the transactions carried out by means of electronic data interchange and through other electronic means of communications, commonly referred to as electronic commerce (e-commerce). The IT Act 2000 facilitated e-commerce and e-governance in India..
The ONDC Initiative: An Attempt To Democratize Digital Commerce In India?
In July 2021, the Indian government announced that it was working on setting up an Open Network for Digital Commerce (ONDC) to provide equal opportunities to all e-commerce players and consumers to democratize the e-commerce industry and to provide alternatives to proprietary e-commerce sites. The ONDC project was managed by the Ministry of Commerce and Industry, Government of India..
Main Challenges for E-Commerce Players
Some of the factors that constrained the growth of the e-commerce sector in India were logistics, infrastructure, competitive analysis, digitization of available networks, mode of transactions, and compliance and regulatory issues..
What lies ahead?
The e-commerce sector was dominated by a few players who were facing investigations for unfair trade practices in many countries. Also, the e-commerce sector was made up of many small players who individually did not have the muscle to drive an equitable bargain with the e-commerce companies. Economists called this scenario a market failure, and it presented a legitimate case for intervention by the government. However, this approach also came with its own risks and had to be used cautiously..
Exhibits
Exhibit I: Number of Mobile Phone Internet Users in India from 2010 to 2025
Exhibit II : Indian e-Commerce Market, 2018
Exhibit III: Market Size of e-Commerce (2014 to 2027)
Exhibit IV: e-Commerce Rule, 2020
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