The Indian direct selling industry grew 4.3 per cent in 2013-14 and achieved sales of Rs 7,472$ crore, a sharp decline from previous fiscals, according to the industry’s annual survey conducted by the Indian Direct Selling Association (IDSA) and the PHD Chamber of Commerce.
Sales grew at 12.2 per cent (Rs 7,164$ crore) in 2012-13 and 22 per cent (Rs 6,385$ crore) the year before. The survey estimates industry turnover at about Rs 24,000$ crore by 2019-20.
“The dip in sales is on account of lack of policy. There is no clarity and the industry faces much uncertainty. That’s what we’ve been asking the Government for over the last six or seven years,” said Chavi Hemanth, Secretary General, IDSA.
Reports indicate that the Finance Ministry is looking to make changes to the Prize Chits and Money Circulation Scheme (PCMCS) (Banning) Act of 1978 to prevent the spread of ponzi schemes. However, direct selling companies have often come under the scanner of the Act, evidenced by the arrest of Amway CEO William Pinckney and two company directors in Kerala last year.
“The Ministry of Consumer Affairs (MoCA) has also come forward to support the industry and frame a separate law. What shape it will take

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