DPI Deep Dive — Thursday | April 02, 2026
Focus Layer: L4 Commerce & Logistics (ONDC, GeM)
Coverage Period: March 26 - April 02, 2026
Executive Summary
This week’s L4 Commerce & Logistics layer sees significant momentum as ONDC’s seller network crosses 6 lakh milestones, the WTO e-commerce moratorium expires creating global trade uncertainties, and IMF officially recognises India’s DPI as a global benchmark. Meanwhile, GeM continues expanding MSME participation in government procurement, with over 3 lakh artisans set to benefit from SFURTI-ONDC integration.
Key Developments
1. ONDC Seller Network Crosses 6 Lakh Mark
The Open Network for Digital Commerce (ONDC) has achieved a significant milestone with its seller network surpassing 6 lakh (600,000) registered sellers as of March 2026. This growth represents a substantial increase from previous quarters and demonstrates increasing merchant confidence in the protocol-based marketplace model.
Why It Matters: ONDC’s protocol-based approach differentiates it from traditional e-commerce platforms by enabling interoperability between buyers and sellers across different applications. The 6 lakh seller milestone indicates that small and medium businesses are increasingly viewing ONDC as a viable alternative to high-commission marketplace platforms.
Cross-Layer Connection: This growth builds upon L1 (Aadhaar-based identity verification for sellers) and L2 (UPI integration for seamless payments). The combination of identity authentication and instant payment settlement has been critical to seller onboarding.
2. WTO E-Commerce Moratorium Expires - Implications for India
The global e-commerce moratorium on customs duties for digital transmissions has expired following deadlocked talks at the WTO’s 14th Ministerial Conference in Yaoundé, Cameroon. India had indicated willingness to accept a two-year extension, but talks collapsed amid US-India disagreements.
Why It Matters: This development creates uncertainty for India’s digital commerce sector. Without the moratorium, countries could impose tariffs on digital downloads, streaming services, and other electronic transmissions. India, as a major player in IT services and digital commerce, faces potential impacts on its tech exports and domestic digital ecosystem.
Policy Context: The WTO will continue negotiations in Geneva, but the expired moratorium marks a significant shift in global digital trade governance. India’s position as a champion of digital public infrastructure may influence how it navigates these new trade dynamics.
3. IMF Recognises India’s DPI as Global Benchmark
The International Monetary Fund (IMF) has officially recognised India’s Digital Public Infrastructure as a leading example of population-scale digital governance. A new IMF paper argues that DPI should be treated like traditional infrastructure, calling for finance ministries to shift from funding isolated digital projects to building shared infrastructure.
Why It Matters: This endorsement validates India’s decade-long investment in DPI and positions the India Stack as a template for other developing nations. The IMF specifically highlights Aadhaar, UPI, and the broader connected framework as models for secure citizen-government-business interactions.
Global Implications: India’s DPI is now being offered as a public good to other nations through bilateral MoUs. This recognition strengthens India’s soft power in digital governance and creates opportunities for DPI technology exports.
4. GeM Procurement Empowering MSEs - February 2026 Data
The Government e-Marketplace (GeM) continues its focus on empowering Micro and Small Enterprises (MSEs), with latest data showing significant procurement from MSE sellers in February 2026. Registration drives across Karnataka, Maharashtra, and other states have been actively onboarding MSME sellers.
Why It Matters: GeM’s mandate to source at least 25% from MSEs (with 3% reserved for women-owned enterprises) is creating tangible government market access for small businesses. The platform’s streamlined registration and procurement processes are reducing entry barriers.
Cross-Layer Connection: GeM integration with L2 (UPI) enables fast payment settlements to MSE sellers, improving cash flow for small vendors who historically faced delayed government payments.
5. 3 Lakh Artisans to Benefit from SFURTI-ONDC Integration
Over 3 lakh (300,000) artisans across India are set to benefit from the SFURTI (Scheme of Fund for Regeneration of Traditional Industries) cluster development programme integrated with ONDC. This initiative provides financial assistance for onboarding, cataloguing, account management, logistics, and packaging.
Why It Matters: Traditional artisan clusters in handloom, handicrafts, and pottery have historically struggled to access digital markets. The SFURTI-ONDC integration directly connects artisans to pan-India buyers through the ONDC protocol, potentially transforming rural craft economies.
Regional Impact: This builds upon existing DPI infrastructure in textile-producing states, creating a full-stack digital pathway from artisan creation to buyer delivery.
6. Agentic AI Transforming E-Commerce Operations
The emergence of agentic AI in e-commerce operations is reshaping how online retail operates in India. These AI systems can simultaneously evaluate competitor pricing, real-time stock levels, demand elasticity, and customer behaviour to execute pricing updates and promotional campaigns autonomously.
Why It Matters: For ONDC and GeM participants—many of whom are small businesses without dedicated tech teams—agentic AI could democratise sophisticated retail operations. However, this also raises questions about data privacy, algorithmic transparency, and competitive fairness.
Cross-Layer Connections
- L1 Identity (Aadhaar): Seller verification and buyer authentication on ONDC/GeM
- L2 Payments (UPI): Instant settlement for ONDC transactions and GeM procurement payments
- L3 Documents (DigiLocker): Business registration documents, tax filings for seller onboarding
- L5 Sectoral (ABHA): Future potential for health e-commerce integration