New Delhi: The country's direct selling industry is expected to touch Rs 159.3 billion by 2021 but certain reforms are required for sustainable growth, according to a study by industry body Assocham.
The direct selling industry has almost doubled since 2011 to reach Rs 126.2 billion in 2016, it said. To further the growth of the industry, the Assocham study suggested relaxation under Foreign Direct Investment policy, enactment of Consumer Protection Bill and some amendment to the Prize Chits and Money Circulation (Banning) Act.
While the Centre has come out with guidelines for the sector, the study pitched for certain other reforms to ensure conducive environment for direct selling entities for implementation of the guidelines at state level.
"Direct selling opportunities can be enhanced in India provided we create a conducive environment which is protecting all the stakeholders within the framework of the regulatory framework," the study observed.
The industry is "the most misunderstood and unacknowledged business activity" despite substantial growth over the years and a number of ways in which it has contributed to Indian economy.