185
In an Inter-Ministerial meeting convened by Ministry of Consumer Affairs held recently, the CAIT while submitting a detailed memorandum on Direct Selling has sought specified legislation to regulate Direct Selling Business in India. The CAIT has also said that under ” Make in India” program of the Government, the Direct Sellers should be given facilitation to set up their plants in India for manufacturing products CAIT National President Mr. B. C. Bhartia & Secretary General Mr. Praveen Khandelwal said that Indian Direct Selling Industry is growing at a phenomenal rate and has a huge growth potential. More than 50% distributors engaged in direct selling business are household women and in this way the direct selling business is promoting women empowerment in the Country to a distinct level. The Direct Selling Business in India has grown from Rs.33 billion in 2009-2009 to Rs.72 billion in 2012-13. According to a KPMG report, the Industry will touch a turnover of Rs.64,500 crore by 2025.
“The direct selling business in India is a source of self-employment particularly the women and as such should be regarded as a vertical of retail trade like e commerce etc.”-said the Confederation of All India Traders (CAIT). The CAIT has called for a separate legislation to regulate and monitor Direct Selling Business which is growing year by year.
In an Inter-Ministerial meeting convened by Ministry of Consumer Affairs held recently, the CAIT while submitting a detailed memorandum on Direct Selling has sought specified legislation to regulate Direct Selling Business in India. The CAIT has also said that under ” Make in India” program of the Government, the Direct Sellers should be given facilitation to set up their plants in India for manufacturing products CAIT National President Mr. B. C. Bhartia & Secretary General Mr. Praveen Khandelwal said that Indian Direct Selling Industry is growing at a phenomenal rate and has a huge growth potential. More than 50% distributors engaged in direct selling business are household women and in this way the direct selling business is promoting women empowerment in the Country to a distinct level. The Direct Selling Business in India has grown from Rs.33 billion in 2009-2009 to Rs.72 billion in 2012-13. According to a KPMG report, the Industry will touch a turnover of Rs.64,500 crore by 2025.The CAIT further has said that as the Industry is poised for growth, it is imperative to bring Direct Selling Industry under an appropriate legislation. In the absence of any legislation, it is feared that crooks who deceit people and elope with their money may have an advantage over genuine companies engaged in Direct Selling Business.
The CAIT has said that the legislation for Direct Selling Industry should include safeguards to protect interest of Industry as well as consumers. Parameters like Minimum capital/equity invested, investment in manufacturing plant, physical infrastructure to provide sales, training and grievance related support, mandatory legal enforceable contract with distributors, transparent disclosures by a direct selling company for its products & services should be included in regulatory mechanism for direct selling Industry.