Which of the following statements about Open Network for Digital Commerce (ONDC) is/are correct?

Q. Which of the following statements about Open Network for Digital Commerce (ONDC) is/are correct?

UPSC CDS Examination (I) 2025 – General Knowledge

1. It was launched in 2021 by the Government of India.

2. Its aim is to democratize e-commerce in India.

3. India has surpassed China in 2024 in e-retail penetration.

Select the answer using the code given below :

(a) 1, 2 and 3

(b) 1 and 2 only

(c) 2 and 3 only

(d) 3 only

Answer: (b) 1 and 2 only

Statement 1 is correct:
The Open Network for Digital Commerce (ONDC) was incorporated as a Section 8 non-profit company on 31 December 2021. It is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, Government of India.
Statement 2 is correct:
The core objective of ONDC is to democratize e-commerce in India. It seeks to shift from platform-centric models dominated by large players to an open, interoperable network, enabling small merchants and local retailers to participate in digital commerce without being locked into a single platform.

Statement 3 is incorrect:
Although India’s e-retail market has grown rapidly and, by 2024, overtook the United States to become the world’s second-largest e-retail market by number of shoppers (around 270–280 million), it still lags behind China, which leads globally with approximately 920 million e-retail shoppers. Hence, India has not surpassed China in e-retail penetration.

Answer: (b) 1 and 2 only