ONDC fuels growth in finance, manufacturing, e-commerce, and agri: Deloitte

The ONDC initiative, led by the Commerce and Industry Ministry, is creating growth prospects for various sectors, according to a recent report by Deloitte. ONDC, the Open Network for Digital Commerce, serves as a facilitative model aimed at helping small retailers harness the potential of digital commerce. The initiative comprises a set of specifications designed to establish open, interoperable networks rather than being a specific application or platform. Its focus is on supporting Micro, Small, and Medium Enterprises (MSMEs) in the retail sector to capitalise on the rapidly expanding e-commerce landscape in India.

Tailored financial solutions

The Deloitte report highlights several key sectors that stand to benefit from ONDC. It underscores the potential for financial institutions to engage with MSMEs, which often rely on government schemes and non-banking financial companies (NBFCs) due to limited creditworthiness as perceived by mainstream financial institutions. The digitised data enabled by ONDC can enhance financial institutions' understanding of this segment, facilitating tailored products and services.

ONDC: Manufacturing and retail synergy

The report notes that ONDC could address challenges across the manufacturing value chain. It suggests that the network could help manufacturing organisations optimise logistics costs, manage supply chain disruptions, and quickly identify alternative supply sources. This would ensure uninterrupted manufacturing operations.

ONDC also offers opportunities for the retail sector, allowing brands, retailers, and distributors to connect within their ecosystem and with end consumers. The network can support features like 24x7 ordering, next-day delivery, and credit management for sales partners. Additionally, ONDC could expand the supplier base and reduce procurement costs for brands and retailers.

Regarding the agriculture sector, ONDC's integration of buyers and sellers across the agricultural value chain onto a single network is expected to accelerate technology adoption and benefit agritech start-ups. Farmers' Producer Organisations (FPOs) could gain access to inputs, technology, equipment, and services from various sources.

Sathish Gopalaiah, Consulting President, Deloitte South Asia, believes that ONDC presents a unique opportunity for India's economy accross diverse industries. He sees it as a transformative force that streamlines value chains, promotes innovation, and drives growth.

(With PTI inputs)