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'Direct selling business critical for India's growth'
Dec '15
Amitabh Kant, Secretary, Department of Industrial Policy and Promotion, has said that said that Direct Selling business is a critical part of India's growth story as it contributes to employment, entrepreneurship, growth of MSMEs, and most importantly women empowerment, according to a press release by the Confederation of All India Traders (CAIT).

"Direct Selling business is a part of make in India and is different from fraudulent pyramid schemes and therefore conducive atmosphere to ensure robust growth of this business in India is the need of the hour," Kant said at a Direct Selling-2015 conclave held at the Ficci Auditorium in New Delhi.

He said that companies like Amway have contributed to the "Make in India" story by establishing a large manufacturing base in India.

Kant told the conclave that the DIPP has prepared a draft of Direct Selling guidelines and the same has been given to Ministry of Consumer Affairs which has created a set of final guidelines that would be shared with all State Governments for their inputs.

The conclave was organised by FICCI and Indian Direct Selling Association in association with CAIT.

Pitching for better growth of direct selling business, Kant said that it is playing a critical and important role in generation of self employment, particularly women entrepreneurs besides sourcing goods from MSMEs which further strengthens the MSME sector. He called for adoption of technology by each segment of trade including small businesses and direct sellers.

He hoped that with a growth rate of 25 per cent by year 2025, direct selling business in India will grow up to $1000 billion. The current size of direct selling business is merely 0.4 per cent of total retail trade with a worth of $75 billion per year. Since the growth is linked with creating jobs, support policies must be drawn for this sector, said Kant.

Earlier, CAIT Secretary General Praveen Khandelwal said that direct selling should be treated as an integral part of retail trade and specified rules and regulations must be made for smooth business in India. He said that under the Government’s "Make in India" programme, Direct Sellers should be given facilitated in setting up their manufacturing plants in India. He further said that legislation for Direct Selling industry should include safeguards to protect interest of industry as well as consumers. (SH)

Fibre2Fashion News Desk – India

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