UPSC Prelims 2026 · GS Paper 1 · Question 89

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

Correct answer: Option C

Economy

Options

  • (a) To allow government control over digital commerce transactions
  • (b) To replace private e-commerce players
  • (c) To break the dominance of large e-commerce platforms by enabling interoperability across networks
  • (d) To mandate UPI-based payments for all online transactions

Detailed solution

Answer

Option (C) — Enable interoperability, democratize e-commerce networks

Explanation
  • ONDC is an initiative launched by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce in 2021.
  • It is incorporated as a non-profit Section 8 company, aimed at promoting open networks for all aspects of exchange of goods and services over digital networks.
  • ONDC is based on open-source methodology, using open specifications and open network protocols, independent of any specific platform.
  • The initiative seeks to democratize digital commerce by moving it from a platform-centric model to an open-network model, similar to how UPI transformed payments.
Statement Analysis
  • (a) To allow government control over digital commerce transactions: Incorrect. ONDC is not about government control; it is a facilitator promoting an open, interoperable network.
  • (b) To replace private e-commerce players: Incorrect. ONDC does not replace private players; it provides an open network where all players, including small sellers, can participate.
  • (c) To break the dominance of large e-commerce platforms by enabling interoperability across networks: Correct. ONDC aims to democratize e-commerce by enabling buyers and sellers on different platforms to transact, breaking platform monopolies.
  • (d) To mandate UPI-based payments for all online transactions: Incorrect. ONDC concerns commerce interoperability, not mandating any specific payment method.
    UPSC Prelims 2026 GS Paper 1 Q89 Answer & Solution | ThinQ IAS