New Delhi's government-backed Open Network for Digital Commerce expects to register 30-40 million monthly transactions through the platform by March next year, its managing director and chief executive T Koshy said on Wednesday.
The open network recorded 10 million transactions in June, a significant increase from more than 7 million transactions in March.
"In March, it was more than 7 million transactions. Now, in June, we had 10 million transactions and I think by the end of the fiscal year it should be 30 to 40 million transactions (monthly)," Koshy said at an event at the CII here. .
He further said that the Open Network for Digital Commerce (ONDC) platform had 5-6 lakh merchants onboarded at present, and the number is expected to increase significantly in the coming months.
He was addressing an MSME summit organized by the CII.
ONDC was created to democratize the country's e-commerce ecosystem.
Koshy said ONDC has started a pilot scheme where it will work with banks and financial institutions on a mechanism that allows a merchant onboarded on the platform to seek a loan or credit based on their transaction history instead of physical collateral.
"It's called flow-based lending, not asset-based lending. Today, 80 to 90 percent of loans are given only against physical collateral... So, that's a change we're going to see. We have launched that, we already did a pilot.
We've already made 50 to 60 actual disbursements," Koshy said.
Earlier in the day, addressing the Summit, IT Secretary S Krishnan said that manufacturing in India offers MSMEs a "huge opportunity to succeed", stating that Meity is looking at ways to stimulate the components ecosystem electronics in the country.
Krishnan urged MSMEs to take advantage of growth opportunities, adopt technology and digital tools to expand and "graduate" to become a larger business over time.
"You come in as a startup and try to exit in a reasonable time frame. So we should no longer have 'intergenerational' MSMEs in this country," he said, pointing to a number of opportunities that technology enables.
Krishnan said India's aspirations to transform into an electronics manufacturing destination are "extremely important" from an employment, resilience and export point of view.
Furthermore, he ensures that quality products are available to domestic consumers in the market.
"There is a huge need for components and I think in that need for components MSMEs have a huge role to play and they need to come into play, significantly," he said.
Not only does component manufacturing offer these companies a great opportunity to succeed, but "there is also a national need to ensure that they succeed," he said.
The Ministry of Electronics and IT (Meity) is looking at ways to promote greater manufacturing of electronic components in the country and wants to encourage and train companies of all sizes and scales in this space.
Citing the success experienced by India in mobile phone manufacturing, Krishnan said the country produces 33 crore mobile units and has a strong export role, a "significant" feat compared to levels a decade ago, when 21 crore units of mobile phones were imported into the country. manufacturing only 5 million units.
However, he noted that while the manufactured and assembled mobile phones now supply almost all of the country's domestic consumption, the value added is only 18 to 20 percent.
"Today we have an advantage in terms of labor cost... the assembly of electronic units is strongly employment oriented, which is good... but to remain based in India, we must remain competitive." " Krishnan said.
For electronics manufacturing to have “deep roots in India” it would require a significant proportion of components to be made here as well.
"Our target is that the value addition doubles to 35-40 per cent in the next five years so that we can take the components manufacturing ecosystem forward and there the role of MSMEs will be significant," Krishnan said.
ONDC Managing Director and CEO further said that the network is also adding insurance as a component and it will be visible soon.
The open network recorded 10 million transactions in June, a significant increase from more than 7 million transactions in March.
"In March, it was more than 7 million transactions. Now, in June, we had 10 million transactions and I think by the end of the fiscal year it should be 30 to 40 million transactions (monthly)," Koshy said at an event at the CII here. .
He further said that the Open Network for Digital Commerce (ONDC) platform had 5-6 lakh merchants onboarded at present, and the number is expected to increase significantly in the coming months.
He was addressing an MSME summit organized by the CII.
ONDC was created to democratize the country's e-commerce ecosystem.
Koshy said ONDC has started a pilot scheme where it will work with banks and financial institutions on a mechanism that allows a merchant onboarded on the platform to seek a loan or credit based on their transaction history instead of physical collateral.
"It's called flow-based lending, not asset-based lending. Today, 80 to 90 percent of loans are given only against physical collateral... So, that's a change we're going to see. We have launched that, we already did a pilot.
We've already made 50 to 60 actual disbursements," Koshy said.
Earlier in the day, addressing the Summit, IT Secretary S Krishnan said that manufacturing in India offers MSMEs a "huge opportunity to succeed", stating that Meity is looking at ways to stimulate the components ecosystem electronics in the country.
Krishnan urged MSMEs to take advantage of growth opportunities, adopt technology and digital tools to expand and "graduate" to become a larger business over time.
"You come in as a startup and try to exit in a reasonable time frame. So we should no longer have 'intergenerational' MSMEs in this country," he said, pointing to a number of opportunities that technology enables.
Krishnan said India's aspirations to transform into an electronics manufacturing destination are "extremely important" from an employment, resilience and export point of view.
Furthermore, he ensures that quality products are available to domestic consumers in the market.
"There is a huge need for components and I think in that need for components MSMEs have a huge role to play and they need to come into play, significantly," he said.
Not only does component manufacturing offer these companies a great opportunity to succeed, but "there is also a national need to ensure that they succeed," he said.
The Ministry of Electronics and IT (Meity) is looking at ways to promote greater manufacturing of electronic components in the country and wants to encourage and train companies of all sizes and scales in this space.
Citing the success experienced by India in mobile phone manufacturing, Krishnan said the country produces 33 crore mobile units and has a strong export role, a "significant" feat compared to levels a decade ago, when 21 crore units of mobile phones were imported into the country. manufacturing only 5 million units.
However, he noted that while the manufactured and assembled mobile phones now supply almost all of the country's domestic consumption, the value added is only 18 to 20 percent.
"Today we have an advantage in terms of labor cost... the assembly of electronic units is strongly employment oriented, which is good... but to remain based in India, we must remain competitive." " Krishnan said.
For electronics manufacturing to have “deep roots in India” it would require a significant proportion of components to be made here as well.
"Our target is that the value addition doubles to 35-40 per cent in the next five years so that we can take the components manufacturing ecosystem forward and there the role of MSMEs will be significant," Krishnan said.
ONDC Managing Director and CEO further said that the network is also adding insurance as a component and it will be visible soon.
