UPSC Prelims 2026 · Question 54 of 96

UPSC Prelims 2026 question on Open Network Digital Commerce

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
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Answer: C. To break the dominance of large e-commerce platforms by enabling interoperability across networks

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.

By fostering open protocols and reducing dependency on monopolistic platforms, ONDC aims to catalyze innovation and inclusivity in the digital commerce landscape. Hence option (c) is the correct answer.

ONDC neither seeks government control over all digital commerce transactions nor aims to replace private e-commerce players, and it does not mandate UPI-based payments for all online transactions.

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