Open Network Digital Commerce (ONDC) and MSME-TEAM Initiative

24-07-2024

The Ministry of M+-SME has launched a sub-scheme called MSME-TEAM Initiative under the Central Sector Scheme "Raising and Accelerating MSME Performance" (RAMP) to assist 5 lakh Micro, Small and Medium Enterprises (MSMEs) to onboard the Open Network Digital Commerce (ONDC) platform.

ONDC is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.

Key Features of MSME-TEAM Initiative:

The scheme aims to provide financial assistance to micro and small enterprises (MSEs) through Seller Network Participants for catalogue preparation, account management, logistics, and packaging material and design.
2.5 lakh MSEs out of the total 5 lakh MSEs to be benefited will be women-owned MSEs.
Awareness workshops will be conducted preferably in Tier 2 and Tier 3 cities and MSME Clusters for greater outreach, especially among women and SC/ST owned MSMEs.
The scheme is valid from 2024 to 2027.
The objective of MSME-TEAM Initiative is to provide assistance to MSEs all across the country.

About ONDC:

ONDC is a network based on open protocol that enables local commerce across segments, such as mobility, grocery, food order and delivery, hotel booking, and travel, among others, to be discovered and engaged by any network-enabled application.
It is a set of protocols and specifications that allow different e-commerce platforms to connect and interoperate with each other.
ONDC aims to create new opportunities, curb digital monopolies, and support MSMEs and small traders by helping them get on online platforms.

Objectives of ONDC:

To democratise digital or electronic commerce, moving it from a platform-centric model to an open-network.
To enable sellers and buyers to be digitally visible and transact through an open network, regardless of what platform or application they use.
To help merchants save their data to build credit history and reach consumers.

RAMP Scheme:

RAMP is a World Bank-assisted program that aims to improve the performance of MSMEs in India.
It is a Central Sector Scheme launched on 30 July 2022, by the Ministry of MSME. The scheme has several objectives, including improving access to markets and credit for MSMEs, strengthening institutions and governance at the central and state levels, improving center-state linkages and partnerships, addressing issues of delayed payments, and greening of MSMEs.
The National MSME Council has been set up by the Ministry to work as an administrative and functional body of the RAMP Programme.

Sub-schemes under RAMP:

MSME GIFT Scheme: MSME Green Investment and Financing for Transformation Scheme intends to help MSMEs adopt green technology with interest subvention and credit guarantee support.
MSE SPICE Scheme: The MSE Scheme for Promotion and Investment in Circular Economy aims to support circular economy projects, which will be done through credit subsidy and will lead to realizing the dream of MSME sector towards zero emissions by 2070.
MSE ODR Scheme: The MSE Scheme on Online Dispute Resolution for Delayed Payments is a first of its kind scheme to synergize legal support with modern IT tools and Artificial Intelligence to address the incidences of delayed payments for Micro and Small Enterprises.

Department for Promotion of Industry and Internal Trade (DPIIT):

DPIIT functions under the Ministry of Commerce and Industry, Government of India.
It is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector.
DPIIT is also responsible for facilitating & increasing the foreign direct investment (FDI) flows to the country.