NEW DELHI, 31st Oct: India’s neighbourhood kirana stores are getting a digital push, and the government wants the FMCG industry to help make it happen. Commerce Minister Piyush Goyal has urged companies to take ONDC’s DigiDukaan initiative nationwide, promising a smarter procurement system that could help small retailers save money, improve transparency and unlock working capital.

The ambition is straightforward. Make digital commerce work for the shopkeeper who keeps India’s retail economy moving.

India’s Kirana Stores Need a Digital Upgrade

Kirana stores remain a critical part of India’s retail ecosystem. Yet procurement, inventory management and access to formal credit can still be difficult for many small retailers.

That’s where ONDC DigiDukaan enters the picture.

Union Commerce and Industry Minister Piyush Goyal chaired a roundtable with more than 40 industry leaders under the Bharat Commerce Chintan Shivir. The meeting focused on strengthening India’s general trade ecosystem through digital procurement and better supply-chain efficiency.

According to the Ministry of Commerce and Industry, the discussions centred on expanding digital technology adoption among kirana retailers, improving market access and making supply chains more efficient.

Goyal also called for greater collaboration between industry stakeholders.

His message to FMCG companies was clear: digital infrastructure cannot remain limited to a handful of markets. It needs to reach kirana stores across India.

ONDC DigiDukaan: The Push for Nationwide Expansion

In a post on X following the meeting, Goyal highlighted the importance of digital adoption among kirana retailers.

He said ONDC’s DigiDukaan demonstrates that when open digital infrastructure is designed around the needs of small retailers, adoption follows.

That observation matters.

Small businesses are unlikely to embrace technology simply because someone tells them to. The system must solve an everyday problem. Procurement needs to become simpler. Transactions need to become more transparent. Retailers need a reason to change how they operate.

Goyal urged the FMCG industry to work together to expand DigiDukaan to every corner of the country.

The initiative aims to make procurement easier while helping retailers free up working capital and grow their businesses.

And the numbers suggest that the platform has already gained traction.

21,000 Retailers and 450 Brands: DigiDukaan’s Growth

According to the ministry, ONDC DigiDukaan had connected more than 21,000 retailers with over 450 brands across Hyderabad, Jaipur and Mumbai as of September 2026.

The previous quarter had recorded more than 12,000 retailers.

That’s a significant jump in the platform’s reach.

Hyderabad has emerged as a particularly important market. More than 16,000 retailers have been onboarded there, with monthly repeat ordering rates ranging between 73% and 78%.

Repeat ordering is worth watching. Signing up retailers is one thing. Getting them to return and use a platform regularly is another.

An initial ONDC study also found that 40% of surveyed retailers reported lower inventory holdings for products procured through the platform.

Lower inventory holdings could help retailers avoid tying up too much money in stock. For a small shop operating on tight margins, that can make a real difference.

Still, the study’s finding applies to surveyed retailers and products procured through the platform. It should not be mistaken for a nationwide outcome.

Five Priorities Driving the ONDC DigiDukaan Push

The roundtable discussed several measures to strengthen the initiative.

1. A Common Digital Identity

A shared digital identity for kirana retailers could help create a more connected retail ecosystem.

2. Shared Logistics and Micro-Warehousing

Industry participants discussed shared logistics and micro-warehousing facilities. These could support better supply-chain coordination and procurement.

3. Better Access to Formal Credit

Digital procurement and transaction records could improve retailers’ access to formal credit.

For small businesses, access to finance remains closely linked to their ability to maintain inventory and expand operations.

4. Simpler Technology Integration

FMCG companies and distributors need easier ways to integrate their systems with the platform.

Complicated technology requirements can discourage participation. Simplification is essential if the initiative is to expand beyond its existing markets.

5. Aligned Commercial Incentives

The participants also discussed aligning commercial incentives to encourage wider adoption.

In other words, the platform needs to work for everyone involved: retailers, brands and distributors.

ONDC Wants to Strengthen Distributors, Not Replace Them

One concern surrounding digital procurement is the potential disruption of existing distribution networks.

ONDC Managing Director and CEO Vibhor Jain addressed this directly.

He said DigiDukaan aims to digitise kirana stores as buyers while strengthening the existing distributor network rather than replacing it.

That distinction is important.

India’s general trade ecosystem has developed through relationships between retailers, distributors and brands. A digital platform that ignores those relationships could struggle to gain acceptance.

The DigiDukaan approach instead seeks to bring technology into the existing system.

The next phase will focus on deeper participation from brands and distributors in Mumbai, particularly North Mumbai. ONDC also plans to strengthen operations in markets where the initiative is already active.

The Road Ahead for Digital Kirana Commerce

ONDC DigiDukaan has demonstrated early traction across three cities. The next challenge is scaling that progress.

The platform needs to make digital procurement useful enough for retailers to keep returning. Brands and distributors must also find clear commercial value in participating.

Goyal’s call for nationwide expansion puts the responsibility on the FMCG industry to collaborate rather than operate in silos.

For India’s kirana stores, the opportunity is practical. Better procurement, improved transparency and access to working capital can support business growth.

The technology is only the starting point.

The real test is whether ONDC DigiDukaan can make everyday retail operations easier for the shopkeeper behind the counter.

Because India’s digital commerce story won’t be complete until the neighbourhood kirana store becomes part of it.

ONDC DigiDukaan has the right idea: digitise the kirana store without pretending that India’s existing retail ecosystem needs to be dismantled.

The focus on procurement, transparency and working capital is sensible. Small retailers need practical solutions, not another complicated app that looks impressive in a presentation but gathers dust after installation.

The reported growth in retailer participation is encouraging. However, expansion should not become the only measure of success. Repeat ordering, lower inventory requirements and meaningful access to formal credit deserve equal attention.

FMCG companies and distributors must also see a clear commercial benefit. Without that, nationwide adoption will remain an ambition rather than an outcome.

@shivendraedits