The Ministry of Micro, Small, and Medium Enterprises (MoMSME), in partnership with the Open Network for Digital Commerce (ONDC), has announced the launch of an initiative to enable small and micro enterprises to join ONDC.

The initiative with a budget of ₹277.35 crore over three years will focus on onboarding 5 lakh micro and small enterprises, with 50 per cent of these being women-led businesses.

The MSME Trade Enablement and Marketing (TEAM) Initiative is aimed to enable MSMEs to embrace digital commerce and expand their market presence.

“The TEAM Initiative will connect MSMEs with the ONDC Network. By providing access to digital storefronts, integrated payment systems, and logistics support, the initiative aims to reduce operational barriers and helps businesses tap into wider customer bases. Beyond these tools, it emphasizes formalizing operations and establishing digital transaction histories, which will enhance the credibility and trust of participating MSMEs,” an official statement added.

Over 150 workshops will be held across Tier 2 and Tier 3 cities, targeting key MSME clusters, with special attention to women and SC/ST-led enterprises. These workshops will guide businesses through the process of joining the ONDC Network, creating compliant digital catalogues, and using the ecosystem to its full potential.

T. Koshy, MD & CEO of ONDC, said, “The MSME TEAM Initiative is more than just a program — it’s an opportunity to empower small businesses with the tools and resources they need to thrive in the digital age. By connecting SMEs to the ONDC Network, we are creating a level playing field that enables them to scale, compete, and succeed. Most importantly, this is now the right time for Indian startups to leverage ONDC to tap into the immense potential of India’s MSME ecosystem.”

To ease the transition to digital commerce, financial assistance will be provided to Seller Network Participants to facilitate catalogue creation, operations and account management, thereby ensuring that SMEs have the help they need to successfully navigate and grow in the digital commerce space.

“This is also an opportunity for startups and technology enablers in India to leverage the ONDC Network to create unique value propositions for India’s vast MSME ecosystem,” Koshy said

By working in tandem with existing government programs like PM Vishwakarma and the Digital MSME scheme, the TEAM Initiative offers a cohesive and comprehensive approach to addressing the needs of small businesses in today’s rapidly evolving economy.

ONDC is a Network of 200+ apps, including buyer apps and seller apps. Shoppers can choose from one of the buyer apps to buy their desired products based on the categories of products those apps have enabled. Sellers can choose from one of the seller apps listed on the Network.

Published on January 28, 2025