India drops new retail policy plan, doubles down on ONDC and trader welfare board
DPIIT is unlikely to roll out a National Retail Trade Policy, opting instead to strengthen ONDC and set up a trader welfare board to shield kirana stores and small retailers from large online marketplaces and deep discounting.
What happened
India's DPIIT is unlikely to introduce a new National Retail Trade Policy, instead strengthening ONDC and creating a trader welfare board to support small
Why this matters
ONDC's elevation as the policy vehicle of choice reshapes India's e-commerce landscape, making open-network integrations and partnerships with small-retailer ecosystems a more attractive entry path than acquiring discount-led marketplaces.
What to watch
- Official notification of trader welfare board composition and mandate
- ONDC monthly transaction/order volume disclosures
- Any DPIIT or ED action on FDI/discounting compliance for marketplaces
- Statements from CAIT or RAI on policy adequacy
- State-level retail policy moves filling the national vacuum
- Large marketplaces (Amazon, Flipkart) pre-empt scrutiny by tweaking seller structures and discount mechanics, and increasing kirana partnership PR
- ONDC pushes aggressive seller/buyer app onboarding incentives and logistics tie-ups to demonstrate traction
- Trader bodies (CAIT) escalate lobbying for board powers and anti-discounting enforcement
- Quick-commerce players (Blinkit, Zepto, Instamart) watch for whether protections extend to their model