Direct selling is one of the fastest growing non-store retail formats in India. The direct selling market in Andhra Pradesh and Telangana is estimated to be close to INR 3.3 – 3.5 billion today. In less than two decades, since it took-off, the industry has provided self-employment opportunities to more than 0.3 million people in Andhra Pradesh and Telangana as direct sellers.
The study indicates that with the right policy stimulus, the industry has the potential to attain a market size of INR50 billion in Andhra Pradesh and Telangana by 2025, driven by growth in the consumer markets and an increase in the penetration of direct selling to globally comparable levels. This is likely to have a cascading effect on the socio-economic parameters, along with attracting commensurate capital investments in manufacturing as well as technology acquisition. The report highlights the need to bring in regulatory certainty for the industry, which is mistakenly coupled with fraudulent money circulation schemes because of a lack of clarity in existing legislations. It recommends the immediate need to formulate sector specific rules/guidelines and standard operating procedures for law enforcement agencies, followed by an amendment in the governing legislation and a clear definition of direct selling, giving it a dedicated industry status, as well as enactment of a thorough sector specific legislation and recognition of the Ministry of Consumer Affairs as a nodal ministry for the industry thereafter.
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