Indian Council for Research on International Economic Relations

Completed Details

Socio-Economic Impact of Direct Selling: Need for Policy Stimulus – Arpita Mukherjee, Tanu M. Goyal, Divya Satija and Nirupama Soundararajan

Project Leader:  Dr. Arpita Mukherjee
Research Team: Tanu M. Goyal, Divya Satija and Nirupama Soundararajan
Commencement: July 2009
Completion:  March 2011
Funded by: Indian Direct Selling Association

Based on a pan-India survey, this study focuses on how the socio-economic benefits of direct selling can be leveraged through appropriate policies. The study finds that the direct selling sector has contributed to the economy in a number of ways. It offers self-employment opportunities to a large number of people, especially women making them financially more independent. Direct selling companies are investing in manufacturing facilities in India, which is leading to percolation of technology. Despite these benefits the sector is facing a number of barriers including absence of a clear definition of direct selling, a transparent FDI policy and lack of consumer protection. The study provides policy recommendations on:

  1. How to recognize a genuine direct selling company and support its growth;
  2. How to regulate the retail sector and streamline the current FDI policy; and
  3. Measures needed to protect the interests of Indian consumers. If implemented it will enable the sector to grow, create employment opportunities and ensure consumer protection. The study was released by Honourable Minister, Mr. Ashwini Kumar on March 18, 2011.

Research

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