ONDC likely to increase digital consumption to $340 billion by 2030: Report

The government-backed Open Network for Digital Commerce (ONDC) has the potential to extend India’s digital consumption by 5 occasions to round $340 billion by 2030, American consulting agency McKinsey mentioned in a report, which was launched by union Commerce minister Piyush Goyal in New Delhi on Tuesday.

“India could exceed expectations for the growth and possibilities of digital commerce with ONDC. The network could evolve into a nerve centre of new connections, sparking continuous innovation and advances. However, there are multiple challenges to address to allow ONDC to scale and achieve greater momentum for success,” McKinsey’s report mentioned.

The challenges embrace, the dearth of digital ease, for each prospects and sellers. The low belief issue, compared with conventional procuring channels, was additionally a deterrent. Even fears of unsafe on-line commerce and unfavourable unit economics on platforms like these hold folks away from transacting on-line, the report mentioned.

Some key findings:

■ Digital services and products consumption will likely be propelled from $60-$70 billion in FY22 to $320-$340 billion by FY30.

■ ONDC may also assist push up the variety of digital transacting shoppers by three to 4 occasions from 165-190 million to 450-500 million customers throughout the identical interval.

■ Only round 6% of all micro, small and medium enterprises (MSMEs), actively promote on e-commerce platforms, which interprets to round 5 to 6 million of them.

■ Due to the propositions of ONDC, this base is prone to shoot up six to seven occasions to 30-40 million by FY30.

■ Small companies from throughout sectors akin to grocery, mobility, vogue and way of life, hospitality and others are prone to leverage the attain of ONDC, which goals to extend the penetration of e-commerce to 25%, from round 4-5% presently, within the subsequent two years by reaching 900 million patrons and having 1.2 million sellers.

(Graphics & illustrations by Rahul Awasthi)

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