India Scales ONDC DigiDukaan to Digitise General Trade Logistics

Union Minister of Commerce and Industry Shri Piyush Goyal has convened a high-level CEO roundtable to accelerate the adoption of ONDC DigiDukaan, a digital infrastructure project aimed at integrating India’s fragmented General Trade ecosystem into a unified procurement and logistics network. The initiative seeks to digitise the country’s vast network of kirana stores, moving the final leg of the FMCG supply chain from informal, paper-based systems to a data-driven digital environment.

The roundtable, organised by the Department for Promotion of Industry and Internal Trade (DPIIT) and the Open Network for Digital Commerce (ONDC), brought together over 40 leaders from major FMCG companies, including Hindustan Unilever, Coca-Cola India, P&G, and Marico. The primary objective is to create a shared roadmap for digital procurement, which allows small retailers to discover and order products across multiple brands and distributors through a single interface.

Logistics and Supply Chain Implications

The most significant operational shift emerging from this digitisation is the move toward shared logistics and micro-warehousing. By creating a common digital identity for retailers, the ONDC framework enables the pooling of logistics resources to facilitate reliable next-day replenishment, even in areas currently underserved by traditional distribution routes. This transition from fragmented, brand-specific delivery to a consolidated, network-based logistics model is expected to significantly improve inland supply chain efficiency.

For maritime and global logistics providers, the digitisation of the Indian retail tail-end suggests a shift in inventory management strategies. Early data from ONDC indicates that retailers using DigiDukaan have reported a 40% reduction in inventory holdings. This suggests a move toward a high-velocity, just-in-time model for FMCG distribution in India, which may eventually reduce the need for massive regional distribution centres in favour of agile, tech-enabled micro-warehousing closer to the point of sale.

Scaling the Network

The initiative is also focused on expanding access to formal credit by linking financing solutions to digital transaction activity. By capturing procurement data, the network allows retailers to leverage their transaction history to secure working capital, reducing reliance on informal distributor credit and potentially increasing the overall volume of trade within the network.

As of September 2026, DigiDukaan has onboarded over 21,000 retailers across Hyderabad, Jaipur, and Mumbai, representing a significant increase from the 12,000 retailers recorded in the previous quarter. In Hyderabad specifically, more than 16,000 retailers are active on the platform, with monthly repeat ordering rates reaching between 73% and 78%.

The ONDC framework is designed to be interoperable, allowing for the integration of plug-and-play Distributor Management System (DMS) connectors and standardised catalogues. This reduces the technical barriers for FMCG companies and logistics providers to join the network, creating a commercially sustainable model that strengthens existing distribution relationships rather than bypassing them.