Question

UPSC Prelims 2026 Question:

Which one of the following best describes the key objective of India's 'Open Network for Digital Commerce' (ONDC) initiative?

1. To allow government control over all digital commerce transactions
2. To replace private e-commerce players
3. To break the dominance of large e-commerce platforms by enabling interoperability across networks
4. To mandate UPI-based payments for all online transactions

Answer (Detailed Solution Below)

Option 3: To break the dominance of large e-commerce platforms by enabling interoperability across networks

Detailed Solution

Answer: 3

Explanation:

The Open Network for Digital Commerce (ONDC) is a transformative initiative by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce, Government of India aimed at democratizing digital commerce.

Launched in April 2022, ONDC is an initiative aiming at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks.
ONDC is based on open-sourced methodology, using open specifications and open network protocols independent of any specific platform.
It envisions creating a level playing field for sellers, buyers, and service providers across India, particularly small and medium enterprises (MSMEs). It serves as a unified platform where stakeholders can interact freely without the constraints of exclusive ecosystems.
By fostering open protocols and reducing dependency on monopolistic platforms, ONDC aims to catalyze innovation and inclusivity in the digital commerce landscape.

Therefore, option (3) is the correct answer.

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