ONDC may give MSMEs direct customer access: JM Financial report

New Delhi, Sept 6 (KNN) The central government backed Open Network for Digital Commerce (ONDC) will provide direct customer access to Micro, Small and Medium Enterprises (MSMEs), said a report by JM Financial Institutional Securities Ltd.

In its latest report it has termed ONDC as a population-scale initiative to democratise e-commerce.

It has the potential to create a win-win scenario for incumbents as well as new entrants, said the detailed report.

One of the roadblocks identified for ONDC in the report is its extreme operational complexity.

"With its primary focus of enabling e-commerce for small retailers and MSMEs, ONDC has the potential to enhance retail digital penetration in the country at an even faster pace than what was seen during the COVID lockdowns,” said the report.

Further it said that generating businesses worth millions of dollars the network will enable a wider customer catchment to small retailers and direct customer access to MSMEs.

Appreciating the digital initiative taken by the Indian government, it said this could take India’s digital reach in retail from the current 5-7 per cent to almost 20 per cent in the next 5 years. (KNN Bureau)