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ONDC Strengthens Fair and Open E‑Commerce Access for Small Sellers, MSMEs and Women‑Led Enterprises Across 630+ Cities

Supported by the MSME Ministry’s TEAM scheme, ONDC is rapidly expanding digital inclusion, with over 1.16 lakh retail sellers onboarded across 630+ cities.

ONDC - MSME - E‑Commerce - Small Sellers - Women Led Enterprises - taxscan
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The Government has reaffirmed the transformative role of the Open Network for Digital Commerce (ONDC) in reshaping India’s e‑commerce landscape by promoting openness, transparency and equal opportunity for sellers of all sizes.

In a written reply to the Lok Sabha, Minister of State for Commerce & Industry Shri Jitin Prasada outlined how ONDC is enabling a more inclusive digital marketplace by breaking away from the siloed, platform‑controlled model that has traditionally dominated online commerce.

Unlike conventional e‑commerce platforms that restrict sellers to their own ecosystems and impose platform‑specific rules, ONDC operates as an open network built on interoperable digital protocols. This allows sellers to be discovered by buyers across multiple apps, irrespective of which platform they originally onboarded with.

Seller‑side applications publish their full catalogues to the network, while buyer‑side applications disclose the parameters used for ranking and sorting search results. This transparency helps sellers understand how they are being displayed and gives them the ability to improve visibility without being constrained by opaque algorithms.

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The Government emphasised that ONDC plays a crucial role in preventing the digital exclusion of small businesses, local traders, artisans, SHGs, FPOs and MSMEs.

By ensuring non‑discriminatory discovery and equal visibility, ONDC lowers entry barriers for micro‑entrepreneurs who may lack the resources or digital sophistication required to compete on traditional platforms. The network’s open specifications also prevent biased listing practices and promote a level playing field.

Complementing ONDC’s digital infrastructure, the Ministry of MSME is implementing the Trade Enablement and Marketing (TEAM) scheme to support onboarding and capacity building for small sellers.

The scheme focuses on digital literacy, cataloguing, awareness and training, with a strong emphasis on inclusivity,targeting 50% of beneficiaries as women‑led SMEs. This integrated approach aims to ensure that the benefits of digital commerce reach underserved and rural entrepreneurs.

As of 9 December 2025, ONDC has onboarded more than 1.16 lakh retail sellers across over 630 cities and towns, reflecting rapid nationwide adoption. While metropolitan‑district‑wise classifications are not maintained, the scale of participation indicates strong penetration beyond major urban centres.

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The Government also highlighted the consumer benefits arising from ONDC’s interoperable model. With multiple buyer‑side apps offering access to the same pool of sellers, competition increases, leading to greater price transparency and wider product choices.

Consumers can compare offerings across platforms more easily, while sellers gain access to a broader customer base without being locked into a single marketplace.

By enabling interoperability, transparency and equal access, ONDC is emerging as a foundational digital public infrastructure for India’s e‑commerce sector.

The Government’s continued support signals a long‑term commitment to democratising online commerce and empowering small businesses in the digitaleconomy.

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