ONDC to sign MoU with MP government on Tuesday

The government-backed Open Network for Digital Commerce (ONDC) is signing a memorandum with the Madhya Pradesh government today to onboard industry and would like to sign similar MoUs with other Indian states, the network’s chief executive T Koshy told ET.

This involves industry awareness workshops for micro, small and medium enterprises, startups, industries and farmer groups, who will join the network as sellers.

An ONDC masterclass to encourage e-commerce entities operating private and public owned e-commerce portals, is also part of the MoU.

Technology providers and startups in the state will have to develop ONDC-compliant buyer and seller applications.
Other aspects of the MoU involves onboarding existing private players with digital platforms to increase local adoption, sprint programming and software development events such as a hackathon, state government nominating a department and a senior functionary to coordinate with ONDC.

“In order to activate the local ecommerce ecosystem in the state and to encourage specialised buyer and seller applications it is important to encourage e-commerce entities, to develop ONDC compliant buyer and seller applications and onboard more buyers, sellers and logistics-players on the ONDC network,” Koshy said.

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The state government may already have implemented digital platforms to help the industry to be digitally present. Also there would be existing private players with digital platforms.

“Special focus may be given to onboard these onto the network at the earliest as this will speed up the local adoption acting as an example and reference,” he said.

By unbundling components of commerce and making them interoperable, ONDC opens up opportunities for development of innovative solutions for different components of commerce, like specialised solutions for local enterprises to be digitally present in the network with ONDC-compliant catalogues and local language supported applications.

“This can be accelerated by mobilising the start-up ecosystem and the existing local IT industry so that they can help the local industry to leverage ONDC,” Koshy said.

In this regard it has been proposed that ONDC can work with the state agencies and incubators to identify and encourage local startups and organise programmes like hackathon to stimulate new innovative solution development.

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