Which one of the following best describes the key objective of India's 'Open Network for Digital Commerce' (ONDC) initiative?
Last updated Jun 9, 2026
Correct Answer:
Option C —
To break the dominance of large e-commerce platforms by enabling interoperability across networks
Understanding the ONDC Initiative:
The Open Network for Digital Commerce (ONDC) is a landmark initiative by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.
The Core Objective: Currently, Indian e-commerce operates in platform-centric silos (where a buyer on Amazon can only buy from a seller on Amazon). ONDC shifts this to an open network model modeled after UPI.
How Interoperability Works: It allows any buyer on any participating app (like Paytm or PhonePe) to discover and purchase products from any seller registered on any other participating network provider (like a local mom-and-pop store or Dunzo).
The Goal: This democratic structure unbundles the supply chain, breaks the duopoly/monopoly of e-commerce giants, lowers entry barriers for small local merchants, and gives consumers more choices.
Why the other options are incorrect:
(a) is incorrect: ONDC is a market-led, open-protocol network, not an attempt by the government to nationalize or control transactions.
(b) is incorrect: It does not seek to replace giants like Amazon or Flipkart; instead, it invites them to onboard onto the network to co-exist alongside micro-enterprises on an equal playing field.
(d) is incorrect: While ONDC seamlessly integrates with UPI for easy payments, it does not mandate it. Consumers can use credit cards, debit cards, net banking, or cash on delivery.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
