Sikkim and Chhattisgarh have adopted model guidelines on direct selling while Karnataka, Maharashtra and Tamil Nadu are in the process of implementing the same, Union Consumer Affairs minister C R Chaudhary said on Wednesday.
He said the government will consider the industry’s proposal to frame a separate law to regulate the direct selling sector, which industry body Assocham expects to hit Rs 45,000 crore by 2025, from the current Rs 7,770 crore.
The sector needs to be developed further as it has high potential to generate jobs in the country, he added.
“We had come out with model guidelines on direct selling in September 2016. So far, Sikkim and Chhattisgarh have adopted (them),” Chaudhary said at an Assocham event.
Karnataka, Maharashtra and Tamil Nadu are in the process of implementing the norms. “We cannot force states to adopt the guidelines. However, we hope more states will implement it,” he added.
The guidelines, which offer clarity on the direct selling sector, has prohibited pyramid as well as money circulation schemes in the garb of direct selling business.
On industry’s demand to frame a separate law, the minister, on the sidelines of the event, said: “We are going slow on this. We will do it gradually. First, we have issued guidelines and the next step is framing a law. We will certainly think on these lines.”
Earlier addressing the event, the minister said a progressive legislation is required as there is still some “drawback” in the system.
Any business can grow if the regulatory systems are in place to facilitate production to marketing of products, he added, highlighting the government schemes, including Start-Up India launched to encourage entrepreneurs.
Assocham Consumer Affairs Council Chairman Vijay Sardana said, “Enterprise spirit has been evoked by the government by launching schemes like Start-Up India and Stand-Up India.
These schemes will not be successful unless direct selling industry is strengthened and promoted.”
Much of the focus of these schemes is on boosting production and there is no policy to facilitate marketing, he observed.