Indian Direct Selling Contributes USD 157 Million To Govt In Taxes

Rajat Banerji IDSA


There is a need to facilitate clear understanding of the concept of direct selling to give its due place, according to Bejon Kumar Mishra, Consumer Policy Expert and Founder of Consumer Online Foundation, New Delhi.

Speaking at a seminar on direct selling on impact on the livelihood of micro entrepreneurs organised by the The Federation of Indian Chambers of Commerce and Industry (FICCI) in the southern Indian city of Hyderabd on Monday, Mishra said direct selling should be understood in the way its should be.

“This is the first time someone is asking for a policy or guidelines because there is no clarity on what direct selling is, everyone is interpreting it in his own way. To clear the confusion and distinguish it with Ponzi and chit fund schemes, a set of guidelines should be made by recommending an immediate amendment to the governing legislation.”

He also said that consumer policies and rights are only on paper but in reality no one really bothers about them and no justice is done.

“We should not tolerate any injustice against the consumer, the seller should be made responsible to any concerns that consumer has and refund should be offered immediately if he is not satisfied with the product bought,” Mishra said.

Referring to consumer protection, he said despite many laws, the consumer is left with no protection in reality and there was lot of confusion on nature of laws.

Rajat Banerji, chairman, FICCI Direct Selling Committee, said that direct selling is one of the oldest forms of sale in the world and its main aim is not selling but to create Micro Entrepreneurs.

“In less than two decades, it has provided self-employment opportunities to more than 50 lakh people in India as direct sellers. The industry holds large potential not only for the economic development, but also social development of the country. With the growth in the industry, it is projected to employ nearly 1.8 crore direct sellers by 2025,” Rajat said.

According to industry estimates, direct selling is estimated to be around Rs.8,000 crore (USD 1.28 billion) with a contribution of Rs.1,000 crore (approximately USD 157 million) to the exchequer.


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