Direct selling industry poised to grow in Assam: study

At a CAGR of 46%, Assam has been one of the fastest growing direct selling states in India between financial year 2010 and financial year 2014, says a joint study by Ficci and KPMG

The direct selling industry has the potential to reach the size of Rs 64,500 crore by 2025 in Assam, said a report prepared jointly by KPMG and Federation of Indian Chambers of Commerce and Industry (Ficci).  This could be reached, said the study, by “swelling” share of middle income households, growth in consumer markets and an increase in the penetration of direct selling to globally comparable levels. However, the report also said that realising this potential would depend on creating an enabling environment for the industry and mitigating some of the challenges it faces today.

Unveiling the report here today, Chandralekha Malviya, principal advisor to the Union ministry for consumer affairs, food and public distribution, said the Centre was in the process of formulating a set of ‘advisory guidelines’ for regulating the direct selling industry. “We acknowledge the need of a clarity in the definition of direct selling industry. The consumer affairs ministry is in the final stage of formation of the advisory guidelines for the industry, which will be out very soon,” she said. 

At a compound annual growth rate (CAGR) of 46%, Assam has been one of the fastest growing direct selling states in India between financial year 2010 and financial year 2014. While the direct selling industry in Assam has witnessed reasonable growth in the past few years, the industry faces certain regulatory challenges which impacted the industry in the year 2013 and 2014. 

The report found that the increasing working population in cities like Guwahati, Jorhat and Dibrugarh also made Assam a good direct selling market. The industry picked up in financial year 2014 and witnessed a growth of 11%. The direct selling market in Assam was approximately Rs 380 crore market in the year 2014.

The state government of Assam is also in the process of bringing in legislations to streamline and regulate this industry. Swapnanil Barua, commissioner of industries and commerce department, said: “State government also feels the need for a regulation to regulate the direct selling industry and use it as a tool for promotion of employment and back end industries of the state”

The FICCI-KPMG India report further said that the state had witnessed a continuous growth in the number of direct sellers in fiscal 2014. Over 0.3 million direct sellers were estimated to be engaged with the industry and this number is projected to grow further with the growth of the industry. According to the report, the industry is expected to provide self-employment opportunities to around 1.1 million people of Assam by 2025.