044.
🗂️ Topic: Economy / Digital Commerce / MSME Development
TEAM Initiative: Government Launches ₹277 Crore Drive to Digitally Empower 5 Lakh MSMEs via ONDC
Introduction
The Ministry of Micro, Small, and Medium Enterprises (MoMSME) has launched the MSME Trade Enablement and Marketing (TEAM) Initiative with a total budget of ₹277.35 crore spread over three years. In collaboration with the Open Network for Digital Commerce (ONDC), the initiative seeks to digitally onboard 5 lakh micro and small enterprises, focusing on women-led and socially disadvantaged businesses.
🎯 Objectives of the TEAM Initiative
- Integrate MSMEs into the ONDC ecosystem to enhance their digital footprint.
- Provide:
- Digital storefronts
- Payment gateways
- Logistics support
- Lower the entry barrier for small businesses entering e-commerce.
- Build credibility, reach, and competitiveness for local sellers.
🏙️ Workshops and Training for MSMEs
- 150+ workshops to be held across Tier 2 and Tier 3 cities.
- Focus areas:
- Digital catalogue creation
- ONDC compliance
- Platform usage best practices
- Priority for:
- Women entrepreneurs
- SC/ST-owned businesses
💸 Financial Support & Incentives
- Aid for Seller Network Participants to:
- Build online stores
- Manage digital catalogues
- Handle account operations
- This ensures smooth onboarding and continued digital presence for small businesses.
🛒 Understanding ONDC
- ONDC (Open Network for Digital Commerce) is a government-backed open protocol aiming to:
- Break the monopoly of large e-commerce players
- Empower local sellers
- Foster competitive pricing and innovation
- Unlike traditional platforms, ONDC is not a single app, but a network connecting sellers, buyers, logistics, and payment systems.
🌐 Advantages of ONDC for MSMEs
| Feature | Benefit to MSMEs |
|---|---|
| Open-source framework | Low-cost entry and high flexibility |
| Equal visibility | Reduces bias toward big brands |
| Integrated services | Streamlined selling experience |
| Innovation-friendly design | Encourages custom solutions and tools |
⚠️ Challenges to Address
- Platform complexity for tech-illiterate users
- Dispute resolution remains underdeveloped
- Customer service issues due to ONDC’s decentralised model
- Brand loyalty for existing e-commerce platforms like Amazon and Flipkart poses competitive pressure
🚀 Future Roadmap
- Invest in digital literacy and localised training to increase adoption
- Develop a robust dispute redressal mechanism
- Launch targeted awareness drives to build trust
- Improve digital infrastructure in semi-urban and rural areas
