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Published 21:30 IST, July 10th 2024

Expect 30-40 million monthly transactions by March, 2025: ONDC CEO

The ONDC was established to democratise the country’s e-commerce ecosystem.

Reported by: Business Desk
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ONDC | Image: Shutterstock

ONDC's ambitious outlook: The government-backed Open Network for Digital Commerce (ONDC) aims to achieve 30-40 million monthly transactions by March next year, according to its Managing Director & CEO, T Koshy.

Speaking at a CII event, Koshy highlighted the significant growth in transactions, with the network recording ten million transactions in June, up from over seven million in March. "In March, it was 7 million-plus transactions. Now in June, we had ten million transactions, and I think by the end of the fiscal year it should be 30 to 40 million (monthly) transactions," Koshy stated.

Koshy also noted that the ONDC platform currently has five to six lakh merchants onboarded, with expectations for this number to rise significantly in the coming months. He was addressing an MSME Summit organized by the Confederation of Indian Industry (CII).

The ONDC was established to democratise the country’s e-commerce ecosystem. Koshy announced a pilot scheme to enable merchants on the platform to seek loans or credit based on their transaction history instead of physical collateral. This "flow-based lending" is a shift from traditional "asset-based lending," which constitutes 80-90 per cent of current loans. "We have launched that, we already did a pilot. We already did about 50-60 actual disbursals," Koshy said.

Opportunities for MSMEs 

At the Summit, IT Secretary S Krishnan emphasized the vast opportunities in manufacturing for MSMEs in India, especially in the electronics components sector. Krishnan encouraged MSMEs to adopt technology and digital tools to expand and evolve into larger enterprises. He highlighted the Ministry of Electronics and IT’s (Meity) efforts to promote greater manufacturing of electronics components in India.

Krishnan pointed to India’s success in mobile manufacturing, noting that the country produces 33 crore mobile units annually and has a strong export presence. However, he stressed that while domestic manufacturing meets almost all consumption needs, the value addition is only 18-20 per cent.

"For electronics manufacturing to dig deep roots in India, a significant proportion of components must also be manufactured here. Our goal is that value addition should double to 35-40 per cent in the next 5 years," Krishnan said, emphasising the significant role MSMEs will play in achieving this target. Koshy also revealed that the ONDC is integrating insurance as a component, which will be visible soon.

Updated 21:30 IST, July 10th 2024