Kashmir Moves Towards a Digital Future with ONDC Integration

   

by Umaima Reshi

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SRINAGAR: The Jammu and Kashmir administration has announced a plan to onboard over 1,000 local sellers and digitise 500 gig workers in Srinagar and Jammu over the next six to nine months. The initiative will be rolled out through a coordinated effort across departments such as agriculture, labour, tourism, and industries, adopting a model similar to Andhra Pradesh’s whole-of-government approach.

The ambitious move stems from a strategic partnership between the Jammu and Kashmir government and the Open Network for Digital Commerce (ONDC), launched under Mission YUVA, the Union Territory’s flagship youth empowerment programme. The agreement was formalised in Srinagar earlier this week, with officials expressing hope that the digital commerce framework would transform livelihoods, expand micro-entrepreneurship, and revitalise the region’s tourism and services sectors.

What is ONDC?

ONDC, a government-backed initiative, is designed to democratise digital commerce by shifting from a platform-centric model to an open, interoperable network. It aims to increase access to e-commerce for small and medium enterprises, artisans, and service providers. Often described as the “UPI of e-commerce”, ONDC works to close the participation gap, enabling sellers from rural and semi-urban areas to enter digital markets. While more than 12 million sellers operate across India, fewer than 15,000 are integrated into e-commerce networks. ONDC seeks to increase this reach to a population scale, targeting participation beyond the current 4.3 per cent.

Three Pillars of the Rollout

The Jammu and Kashmir rollout will follow a three-tier model.

First, the YUVA app has been integrated with ONDC as a seller platform. It will facilitate the onboarding of retailers, restaurants, and small businesses with zero commission. QR-code catalogues and hyperlocal logistics solutions will be piloted in selected neighbourhoods of Jammu and Srinagar. Youth trained under Mission YUVA will support vendors with their digital setup and order fulfilment.

Second, service professionals such as electricians, mechanics, and carpenters will be brought online. The plan includes providing soft-skills training and developing a unified digital identity to improve trust and reliability. These services will be accessible through ONDC-compatible platforms, helping citizens find local service providers more easily and laying the foundation for a localised digital services economy.

Third, the administration plans to promote and streamline high-value regional products, including Pashmina, saffron, handicrafts, and fresh fruit. These will be organised into product clusters, supported by logistics hubs, packaging centres, and digital payment systems. Sellers will have access to branding assistance, paperless loans disbursed in under six minutes, and GST-linked credit facilities. Support will also come from the Ministry of MSME’s Rs 277 crore TEAM scheme, aimed at assisting five lakh small enterprises across the country.

Administrative Backing

During a high-level review with ONDC officials, Chief Secretary Atal Dulloo emphasised the need for simple and scalable models. He directed the Labour and Employment Department to begin by developing hyperlocal service systems within a 3 to 4 km radius, highlighting the importance of empowering nano and small entrepreneurs to serve their communities.

Director of Labour and Employment, Shahzad Alam, said BISAG-N has developed a seller application to help onboard local vendors. Plans are also underway to establish collection hubs at both the district and UT levels to consolidate goods produced by weavers, artisans, and local manufacturers for efficient distribution.

Learning from Other States

ONDC officials pointed to successful outcomes in other states to illustrate the network’s potential. In Tamil Nadu, Sri Vidhya Handlooms increased its product listings from 20 to 900 and received over 1,900 orders after joining the network, bypassing intermediaries. In Himachal Pradesh, Himira, a women-led enterprise, now averages 2,000 monthly transactions by digitising their crafts and produce. Andhra Pradesh added 3,000 new sellers in two months across 12 government departments.

Tourism and Transport to Join the Network

The JAMMU AND KASHMIR government also intends to integrate ONDC with tourism and transport services. Under the National Digital Tourism Mission, Shikaras, taxis, homestays, and sightseeing experiences will be digitised. Tourists will be able to book everything from transportation to cultural tours through a single ONDC-connected application. Future features include Buy Now, Pay Later (BNPL) payment options and integrated insurance services for travellers.

A spokesperson from ONDC said the initiative was more than just an e-commerce solution. It aimed to rewrite the economic rules for artisans, gig workers, and farmers, bringing unique regional products to national markets. A government official added that the collaboration with Mission YUVA was designed to turn Jammu and Kashmir into a digital-native economy, with the youth at the centre of the transformation.

With ONDC providing the digital infrastructure and Mission YUVA offering grassroots support, the government hopes to bridge the divide between local talent and national markets, paving the way for inclusive and equitable digital growth in the region.

 

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