Impact of ONDC on the Competitiveness of Small Retailers in the Indian E-Commerce Sector

It was founded by the government with the intention of democratizing online commerce and leveling the playing field for all as regards small and medium-sized retailers operating in India. This paper examines ONDC’s impact on the competitiveness of small retailers within the larger Indian e-commerce ecosystem. Using secondary data as drawn from government reports and reputable news sources, the paper investigates ONDC’s operational model, cost advantages, adoption trends, and sectoral penetration. Findings indicate that ONDC significantly reduces operational costs and expands the market for small retailers while infrastructure and awareness issues remain.