Microsoft Joins ONDC: US-based tech giant Microsoft has become the first international company to join the Open Network for Digital Commerce (ONDC)a government-backed project.

Key Points:

• Microsoft plans to introduce social e-commerce in the country.
• The American tech giant is expected to launch a social commerce retail app in the Indian market which would include a shopping app for Indian consumers along with their social circle, harnessing the ONDC network to discover the best pricing among retailers and sellers.
• This is the government's effort to break Amazon and Walmart's dominance in the e-commerce sector.
• ONDC is heading for its launch in Bengaluru in August 2022.
• As a part of the launch, the project had organized a webinar explaining features of ONDC including how it would influence the e-commerce space in India, how a live transaction will work, and why should people opt ONDC for their business, among others.

Significance of Microsoft joining ONDC:

• With Microsoft joining the ONDC team, the project achieves its first well-known international marquee name before its Bengaluru launch.
• Several players are currently active on the ONDC network, offering a range of services related to the e-commerce supply chain, including logistics services and buying and selling.

About ONDC:

• Open Network for Digital Commerce (ONDC) is the Indian government’s ambitious project to streamline digital commerce in the country.
• It is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.
• It is a network based on open protocol and will enable local commerce across segments, such as mobility, grocery, food order and delivery, hotel booking and travel, among others, to be discovered and engaged by any network-enabled application.
• This initiative is expected to transform the marketplace ecosystem from an operator-driven platform-centric model to a facilitator driven interoperable decentralized network.
• It is being developed as a counter to the current duopoly in the Indian e-commerce market which is largely dictated by Amazon and Walmart-owned Flipkart.

Others on board:

• Axis Bank, HDFC Bank and Airtel have already initiated integration with the network.
• Among those that are live are Paytm, which has joined the platform as a buyer, and Reliance-backed Dunzo, which is offering logistics services for hyperlocal deliveries.
• Companies like Kotak, PhonePe, Zoho and Snapdeal are in the “advanced stage of development”.
• According to the website, e-commerce giants Amazon and Flipkart are also considering joining the network.

What means open-source project?

• An open-source project means that anybody is free to use, study, change, and distribute an open-source product for any reason.
• To enforce these restrictions, an open-source license is used making adoption easier and facilitating collaboration.