According to a report by industry chamber PHD in association with the Indian Direct Selling Industry (IDSA), growth in India’s direct selling industry decelerated last fiscal amid regulatory challenges. The country’s Direct Selling industry grew by 4.3 per cent in FY 2013-14, down from a 12.2 per cent expansion in FY 2012-13, the report said.
Gross sales were Rs 7,472.2 crore in FY 2013-14, compared to Rs 7,164.1 crore in the previous year, the report added. “The direct selling industry has registered growth rate of about 4.3 per cent in 2013-14 as against the growth rate of 12.2 per cent of 2012-13, 22 per cent of 2011-12 and 24 per cent of 2009-10,” the report said. The Northern region, accounted for 29 per cent of sales which grew 12.2 per cent in FY 2013-14. The Southern region, which accounted for 25 per cent of overall industry sales, witnessed a drop in sales from the previous year.
“Southern region, which was earlier our main base, is not doing well due to lack of clarity on the policy for direct selling. In state like Kerala, direct selling has stopped," the report said. While growth in the direct selling industry has slowed in India in the past three fiscals, globally, the industry grew more than 8 per cent in 2013.