Direct Selling Guidelines 2016, brought clarity: India Inc


India 30 September 2016: The Centre's announcement of "model guidelines" for direct selling, which is expected to boost entrepreneurship and spur growth in the country, has been hailed by India Inc.

India Inc. termed the move, announced in recent past, as progressive and said it would boost the sector.

Direct Selling Guidelines 2016, brought clarity: India Inc


We wholeheartedly welcomes the new guidelines to regulate Indian direct selling companies, issued by the Ministry of Consumer Affairs to safeguard the interests of consumers, as well as help protect ethical direct selling companies, said Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry.

According to our projections, the annual revenue size of the Direct Selling Industry is estimated to reach upto INR 15,000 crore by 2019-20 on account of conducive policy framework and regulatory clarity by the government, he said.

Mr. Sameer Rastogi, Managing Partner India Juris and Chief Advisor Venture Catalyst said “After a long time government has cleared the regulatory scenario in Multi Level Marketing and Direct Selling sector which will help in the growth of Multi Level Marketing and Direct Selling sector without any fear and uncertainty. The guidelines provide clarity to the Multi Level Marketing and Direct Selling Companies at the same time safety to the consumers and direct sellers.

The guidelines prohibits operation of Pyramid Scheme and the direct seller should not receive remuneration or incentive  for the recruitment or enrollment of new participants, a clarification is required here whether incentive of recruitment or enrolment of new participants excludes the commission received from the sales done by new participants”. added by Mr. Rastogi.

The annual revenue size of the direct selling industry in 2014-15 was estimated at around Rs.7900 crore.