Question

UPSC Prelims 2026 Question:

Which one of the following best describes the key objective of India's 'Open Network for Digital Commerce'  (ONDC) initiative?

  1. 1. To allow government control over all digital commerce transactions 
  2. 2. To replace private e-commerce players 
  3. 3. To break the dominance of large e-commerce platforms by enabling interoperability across networks
  4. 4. To mandate UPI-based payments for all online transactions

Answer (Detailed Solution Below)

Option 3: To break the dominance of large e-commerce platforms by enabling interoperability across networks

Detailed Solution

Answer: 3

Explanation:  

The Open Network for Digital Commerce (ONDC) is a transformative initiative by the Department for  Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce, Government of India aimed at  democratizing digital commerce.  

  • Launched in April 2022, ONDC is an initiative aiming at promoting open networks for all aspects of  exchange of goods and services over digital or electronic networks.  
  • ONDC is based on open-sourced methodology, using open specifications and open network protocols  independent of any specific platform.  
  • It envisions creating a level playing field for sellers, buyers, and service providers across India, particularly  small and medium enterprises (MSMEs). It serves as a unified platform where stakeholders can interact  freely without the constraints of exclusive ecosystems.  
  • By fostering open protocols and reducing dependency on monopolistic platforms, ONDC aims to catalyze  innovation and inclusivity in the digital commerce landscape. 

 

Therefore, option (3) is the correct answer.  

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