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Facilitate speedy implementation of Centre’s guidelines for direct-selling industry: ASSOCHAM plea to Karnataka govt


Thursday, July 26, 2018

Bengaluru, July 26, 2018: Apex industry body ASSOCHAM today urged the Government of Karnataka for speedy adoption and subsequent implementation of Centre’s draft guidelines as final norms for direct-selling business as that would push industry's growth and spur skill development, innovation and job creation within the state.


“The Associated Chambers of Commerce and Industry of India (ASSOCHAM) would soon undertake a comprehensive research on the best operational model suited with the current policies for direct selling industry in Karnataka together with the real challenges being faced by the sector and share it with the state government to enable it to take effective steps,” said Mr Vijay Sardana, chairman of ASSOCHAM Task Force on Direct Selling.
He was speaking at an ‘ASSOCHAM Regional Conference on Promoting Direct Selling for Developing Entrepreneurship and Job Creation,’ held here today.
The Model Framework for Guidelines on Direct Selling were issued by the Union Consumer Affairs Ministry in September 2016. The notification of these guidelines was a significant milestone towards clarifying the Government’s stance on direct selling industry and regularise the same. While seven states – Chhattisgarh, Sikkim, Telangana, Andhra Pradesh, Odisha and West Bengal - have adopted the Centre’s guidelines, other states like Karnataka are expected to soon follow suit.
The conference aimed at highlighting the socio-economic benefits of direct selling industry provided a common platform for key stakeholders to exchange views and identify the roadmap to fast track the implementation of Centre's guidelines in Karnataka.
Sharing industry’s perspective, Mr Sardana said, “If the Government ensures speedy implementation of the guidelines, it will result in creating over 10 million entrepreneurs by 2020.”
He added that India has 50 per cent of the world’s youth population and direct selling has a great potential to create jobs and self-employment.
In his address at the ASSOCHAM conference, Mr Zaheer K Merchant, Director - Corporate Affairs, QI Group said, “India has embarked on a key step forward with framing guidelines and legislation being formed or reformed, and undertakings of such nature particularly when supported by the State Government of Karnataka are admirable. We simply need robust guidelines, infrastructure and their proper implementation for a professional and ethical industry.”
Mr Merchant who is also member of the Direct Selling Association of Singapore added that as per the data issued by the World Federation of Direct Selling Associations (WFDSA) the global direct selling industry reported revenue of US$189.6 billion (bn) for 2017 with approximately 117 million (mn) sales distributors involved world-wide out of which 74 per cent were women. While India contributed US$1.5 bn, the industry provided self-employment opportunity to 5.1 mn people in the country.
Earlier, Dr O.V. Nandimath, Register & Law Professor, National Law School of India University (NLSIU) in his address said that direct selling is one of the entrepreneur opportunity which can help India in fulfilling its dream initiatives on self-employment.
ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations, and serving over 4.5 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on
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