Cross-border trades to be a game-changer for ONDC: CEO T Koshy
I think there’s a lot of room for growth. ONDC and McKinsey have jointly published a report in which we examined the potential for e-commerce in India. According to McKinsey, ONDC will enable a 5-fold rise in India’s digital consumption to $340 billion.
This will lead to an increase in penetration of e-commerce to 25%, from about 4-5% currently, in the next two years by reaching 900 million buyers, and 1.2 million sellers likely having a gross merchandise value of $48 billion. The inclusion of cross-border trades in addition to this is poised to be a game-changer in the immediate term. The ONDC network protocol operates without geographical restrictions, allowing any seller the freedom to offer products and services to buyers across any location, even internationally.
Notably, the network has successfully conducted its first cross-border transaction with Singapore and is progressing towards scaling up this initiative. The network is fully prepared for mobility and has experienced the quickest adoption in this category in cities like Bengaluru, Mysore and Kolkata. The team consistently collaborates with various state transport agencies to facilitate the integration of all transportation modes, including metros, buses, and on-demand rides like auto-rickshaws and metered taxis.
Multi-modal transportation, which integrates multiple modes in a single booking, is something we’re working towards. However, this will take some time. ONDC is a network backbone.
It will enable many more use cases and is designed to support commerce of any catalogue-able product or service. However, comparing it to a “one-stop-shop" is again going down the platform way of thinking. We will be an enabler to unprecedented innovation.
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