"ONDC Revolution: How India Is Becoming the World’s 3rd Largest Digital Commerce Power" | Special Report | UPSC • MPPSC • SSC • BANKING • RAILWAY Exam Oriented (2026) | Current Affairs

MPSelectionPoint January 18, 2026

ONDC Revolution – Special Report 2026

ONDC Revolution: How India Is Becoming the World’s Third Largest Digital Commerce Power 🚀📈

Special Report | UPSC • MPPSC • SSC • BANKING • RAILWAY Exam Oriented (2026)

Introduction

      Under the Digital India mission, India has made unprecedented progress over the past decade in digital payments,
      e-governance and e-commerce. In this sequence, ONDC (Open Network for Digital Commerce) is a revolutionary initiative
      of the Government of India that is proving to be a milestone in making the country’s digital trade ecosystem
      democratic, transparent and inclusive.
      Through ONDC, India is not only strengthening its domestic trade but is also rapidly moving towards becoming
      the world’s third largest digital commerce power.
      From the perspective of competitive examinations, ONDC is an extremely important contemporary topic related to
      economy, governance, technology, startups and inclusive development.
    

What is ONDC?

ONDC is an open-source, open-network based digital commerce platform developed under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. It is not an app of a single private company, but a network like UPI, on which different buyer and seller apps can interconnect. In simple terms, ONDC is the UPI of digital commerce.

Why Was ONDC Needed?

India’s e-commerce market has long been dominated by a few large private companies. As a result, small shopkeepers and MSMEs were left behind, platform commissions were high, and data as well as market power remained concentrated with a few players. ONDC aims to break this monopoly and create an open, competitive and fair digital marketplace.

Key Objectives of ONDC

Providing a digital platform to small traders and MSMEs
Promoting fair competition in e-commerce
Offering better prices and more choices to consumers
Democratisation of data and technology
Strengthening Vocal for Local and Atmanirbhar Bharat

How Does ONDC Work?

ONDC consists of buyer apps, seller apps, and logistics and payment providers. A buyer can search for products on one app and purchase them from a seller registered on another app. This removes platform lock-in and ensures openness.

Comparison with the UPI Model

Aspect	UPI	ONDC
Domain	Digital Payments	Digital Commerce
Nature	Open Network	Open Network
Impact	Cashless Economy	Inclusive E-Commerce

Economic Impact

ONDC is expanding e-commerce to Tier-2 and Tier-3 cities. Digitisation of local trade, employment generation, GDP growth and promotion of exports are its major economic benefits.

Challenges

Lack of digital literacy
Hesitation in adopting technology
Logistics and cyber security issues
Resistance from private players

Exam Perspective

For UPSC and MPPSC, answers should link ONDC with Digital Public Infrastructure and inclusive growth. For SSC, Banking and Railway exams, ONDC’s full form, ministry, objectives and benefits are highly important.

Conclusion

ONDC is the foundation of India’s digital future. Just as UPI gave India global leadership in digital payments, ONDC has the potential to make India the world’s third largest digital commerce power. This initiative is a strong example of Atmanirbhar Bharat, Digital India and inclusive growth.

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