Gurugram direct-selling firms relieved as centre validates customer networks

Gurugram, June 24 (KNN) The direct-selling companies based in Gurugram welcomed government’s move to officially recognise the utilization of customer networks by such firms. 

This decision brings particular benefits to over 35 percent of the customers who are women engaged in home-based work, providing them an opportunity to earn additional income easily.

This move by the centre brings a major relief to the industry, which is pegged at over Rs 1,000 crore in Haryana and has 20,000 major players in Gurugram alone.

The ADSEI (Association of Direct Selling Entities of India) had earlier written to the Central Government, seeking respite from legal hassles. 

ADSEI Administrator Hem Pandey said the move would give a fillip to the growth of the direct-selling industry in the country.

“This notification was long overdue. Now, all the confusion prevailing in the industry will come to an end, making it easier to operate. This industry helps many, primarily women, become self-reliant. The credibility of this sale model had earlier come under the scanner for want of a network. This simple amendment will give the industry much-needed boost,” added Gautam Bali of the ADSEI. 

According to a report released by Indian Direct Selling Association (IDSA), the direct selling industry grew 7.7 per cent to cross the 18,000 crore-mark during the financial year, 2021. 

Besides, employment in the industry shot up amid the Covid pandemic. In Financial Year 2021, the total number of direct sellers grew 6.32 per cent to almost eight million as compared to the 7.4 millions who had taken up the direct-selling schemes in FY 2019-20. 

Globally, the direct-selling industry is pegged at USD 190 billion, and in India, it is close to USD 3 billion.  (KNN Bureau)