In a bid to bolster digital commerce among Micro and Small Enterprises (MSEs), the Indian government is reportedly gearing up to launch a new scheme aimed at integrating these businesses into the Open Network for Digital Commerce (ONDC). According to a report from the Economic Times, the Ministry of Micro, Small, and Medium Enterprises (MSME) is spearheading the Trade Enablement & Marketing (TEAM) scheme, earmarked with a corpus of INR 277 crore.
The initiative aims to empower MSEs to expand their market reach beyond traditional brick-and-mortar setups by leveraging the ONDC platform. One of the primary advantages highlighted in the report is that MSEs will avoid paying high commissions typically associated with mainstream online marketplaces, thus enhancing their competitiveness in the digital sphere.
The government has set an ambitious target of supporting 500,000 MSEs through the TEAM scheme, which is expected to operate until 2026-27. Under this scheme, MSEs will receive subsidies facilitated by seller network participants (SNPs), which will cover essential services such as catalogue creation, account management, packaging, and logistics. This financial support is intended to alleviate the initial barriers MSEs face when transitioning into online sales channels.
ONDC, launched in 2021 under the Department for Promotion of Industry and Internal Trade (DPIIT), operates on an open protocol-based network designed to facilitate local commerce across various sectors including grocery and mobility. The platform aims to democratize ecommerce by offering services at lower costs compared to established online marketplaces dominated by giants like Amazon, Flipkart, and Meesho.
Since its inception, ONDC has progressively expanded its service offerings and participant base, registering a notable 23% month-on-month increase in transactions in May. The platform achieved a milestone of 8.9 million transactions across retail and ride-hailing segments during the same period, underscoring its growing influence in the digital commerce landscape.
In a concerted effort to onboard small businesses onto its platform, ONDC launched the DigiReady Certifications (DRC) portal earlier this year in collaboration with the Quality Council of India (QCI). This portal enables MSMEs to self-assess their readiness to become sellers on ONDC, thereby streamlining the onboarding process.
Moreover, ONDC has partnered with Meta to educate small businesses on enhancing buyer-seller interactions through WhatsApp, utilizing Meta’s business and technical solutions. This collaboration is part of ONDC’s broader strategy to empower MSEs with accessible and effective digital tools.
The burgeoning Indian ecommerce market, forecasted to grow at a compound annual growth rate (CAGR) of 19% from 2022 to 2030, is a focal point for these initiatives. By 2030, the market is expected to reach a size of $400 billion, highlighting the immense growth potential and opportunities for MSEs participating in digital commerce.
As the government prepares to roll out the TEAM scheme, MSEs across India stand to benefit from enhanced access to digital markets, reduced operational costs, and increased competitiveness in the evolving ecommerce landscape.
