Market size of direct selling industry in India is expected to be over Rs 10,843 crore by 2014-15, according to a survey by India Direct Selling Organization(IDSA).
“The Indian size of direct selling industry is expected to expand from Rs 6,385 crore in 2011-12 to over Rs 10,843 crore by 2014-15 and Rs 34,000 crore by 2019-20,” the survey stated.
Around 18 companies involved in direct selling of products are members of IDSA.
As per IDSA quotes, distributors linked with the direct selling market in India are set to increase by upto 15 per cent over next two years, stated Jignesh Mehta of Amway India, a subsidiary of Amway Company, USA, which is a member of IDSA.
“We anticipate an addition of up to 7.5 lakh suppliers to the direct selling market in India by 2014-15,” he stated, including that at present around 50 lakh suppliers are linked to the sector.
IDSA has been demanding a different legislation for direct selling sector in India and its exemption from The Prize Chits And Money Circulation Schemes (Banning) Act, 1978.
In a feedback on requirement of clear policy framework for the industry, 73 per cent participants feel that the current standards presented in some states on the Indian direct selling market is a favorable step.
Nevertheless, 27 per cent of the business felt that carrying out these standards in only a few states could not suffice to erase deceitful practises and fly-by-night companies from the market.
States like Kerala and Rajasthan have vetted the draft of regulations, but there is very little clearness,-Mehta said quoting the report.
The survey findings have revealed that 83 per cent of the companies contribute to CSR tasks, while 17 per cent do not.