Reports 12 per cent growth in 2012-13
The direct selling sector registered a growth of 12.2 per cent in gross sales revenue at Rs.7,164 crore in 2012-13, according to a report by the PHD Chambers of Commerce and Industry.
The report forecasts that sales revenue will rise to Rs.10,843 crore by 2014-15 from the present levels.
“The steady growth is mainly attributed to factors such as entry of new firms, expansion of business to different cities, and more youth joining the force,” the report, which was released on Thursday, with the India Direct Selling Association (IDSA), said.
The sector paid a total tax of Rs.986 crore in 2012-13 as against Rs.821 crore in the previous year, it added.
“However, during 2012-13, the industry has faced a decline in its overall growth scenario due to several hurdles such as global economic milieu and policy environment and declining investments,” the report said.
The sector registered a growth rate of 12 per cent in 2012-13 against that of 22 per cent in 2011-12 and 27 per cent in 2011-12.
The northern region contributed the maximum of Rs.1,934 crore to the gross sales revenue with a growth of 33 per cent. But, there was a negative growth of 30 per cent in the turnover in the southern region.
“It is mainly due to Kerala, where the State Government is not supportive on the issue of the Prize Chits and Money Circulation Schemes (Banning) Act,” IDSA Secretary-General Chavi Hemanth said.
She further said that the government should grant the sector industry status by amending the prevailing rules and regulations.