Building Digital Trust from the Ground Up: Lessons from ONDC’s Expanding Network

When India’s Open Network for Digital Commerce (ONDC) began operations in 2022, it set out to do something unusual. Instead of creating another marketplace, it built the digital rails that would allow every marketplace to connect. The idea was simple: make e-commerce open, inclusive, and interoperable.

Three years later, the results are visible across small towns and cities. Local grocery stores, handicraft sellers, and delivery startups are joining a network that connects buyers and sellers directly, without forcing them into a single platform. The shift may seem technical, but it represents something deeper. ONDC has shown that trust in digital systems can be built collectively, not controlled by a single entity.

The impact is most visible among small merchants who were previously excluded from online commerce. By using common standards for catalogues, logistics, and payments, local retailers can now compete on equal terms with national brands. The same QR code that powers a small kirana’s UPI payments can now link it to an open digital marketplace.

This decentralised model is also prompting innovation. Startups are building new layers on top of ONDC, from price discovery tools and logistics optimisation to digital identity and credit assessment. Each new participant strengthens the network rather than fragmenting it.

For Sutra, ONDC represents more than a commerce initiative. It is a proof of concept for what interoperable registries can achieve in other sectors such as health, education, and climate. It shows that when digital infrastructure is designed as a public good, trust emerges through participation, transparency, and shared ownership.

The story of ONDC is still being written, but its lesson is clear. Digital ecosystems thrive when they prioritise openness over exclusivity and collaboration over control. The same principles will define the next generation of trusted digital systems that Sutra aims to support.