Bengaluru: Keeping its growth trajectory intact, Karnataka continued to be at the top in Direct Selling business in the Southern region of the county, reaching Rs 1128 crore during the financial year 2021–22, according to an Annual Survey Report released by the Indian Direct Selling Association (IDSA) here on Tuesday.
The survey, carried out by IPSOS Strategy 3, shows a sales increase of Rs 94 crores, with more than nine percent growth over the previous FY figure of Rs 1034 crores, indicating that despite the year being partially marred and impacted by the COVID-19 second wave, the direct selling industry could manage to emerge stronger and maintain its growth momentum in the state.
During the period, the state also contributed nearly Rs 170 crore to the exchequer by way of taxes. The sector, however, remained static in terms of the number of direct sellers, at 78 thousand, with nearly 34 thousands of them women. The state had a share of over 5.9% of the overall national sales, which stood at over Rs 19,030 crore during the period, the report further elaborates.
Rajat Banerji, Chairman, IDSA, in his address highlighted “Karnataka continues to be a key market for the direct selling industry. The growth of over nine percent clearly reflects that the direct selling industry in the state could withstand the blip of the COVID-19 pandemic’s second wave, which extended to the first quarter of the year. The growth figure also reaffirms the relentless hard work of direct sellers. Direct Selling has provided sustainable self-employment and micro-entrepreneurship opportunities for nearly 84 lakh Indians and has demonstrated consistent and sustained growth with a CAGR of approximately 13 percent over the period of the last four financial years down the line. The 19 member companies of IDSA can confidently lay claim to successfully protecting consumer interests as well as those of the 78 thousand direct sellers in Karnataka,” added Banerji.
He said the year bore the fruits of hard work and efforts by IDSA and other premier institutions, witnessing a major development when the Ministry of Consumer Affairs notified Consumer Protection (Direct Selling) Rules-2021 in December 2021, bringing regulatory clarity on the operations of the direct selling entities in the country. Vivek Katoch, Vice Chairman, and Ms Aprajita Sarkar, Secretary, IDSA, were among the dignitaries present on the occasion.
