Govt to extend support for direct marketing firms Telangana contributes 13.15% sales in southern region in direct selling: IDSA

Hyderabad Telangana government is ready to extend all help and support to direct marketing companies to setup manufacturing in the State, said Jayesh Ranjan, Principal Secretary Industries & Commerce (I&C) and Information Technology (IT). He was speaking at Telangana Direct Selling Sammelanam 2021 in the city on Friday.

He said that direct selling is a 20-year old industry and faced problems in the past due to some companies that cheated customers and committed fraud. Telangana government framed regulations in 2017 for direct selling companies to protect consumer interests. Registration of direct selling companies will start soon by the Centre under Department for Promotion of Industry and Internal Trade (DPIIT). Telangana has good industrial policy and will always encourage companies with good quality products in direct selling, he added. "The State has been on the forefront in direct selling. Along with providing job and self-income generation opportunities, the direct selling industry would also be expected to encourage MSMEs by increasing their sourcing from them."

The direct selling industry in Telangana is all set to leverage its potential with a conducive business climate. The State contributed 13.15 per cent share of business in the southern region with a turnover of Rs 292.50 crore, corresponding to 1.74 per cent to national sales in 2019-20, according to the annual survey report released by the Indian Direct Selling Association (IDSA).

To provide impetus to further growth, the IDSA urged Telangana government to facilitate a registration mechanism for direct selling entities in the State. V Prakash Rao, Policy Advisor to Chief Minister of Telangana and Chairman of Telangana Water Resources Development Corporation said that the government cannot provide jobs for all. Youth can look to direct selling for employment opportunities.

He said: "Previously, direct selling was seen as a second income but things are changing and people are seeing it as a primary income thing. Earlier, mostly women were taking part in it, but now the trend is changing and we are seeing men taking the lead." He expressed his happiness on seeing that 84 per cent of the direct sellers were graduates.

Direct Selling industry is looking at Telangana as a preferred destination not only for generating sales but also for establishing production facilities for manufacturing high quality goods. Leveraging the industry friendly initiatives of the Telangana government, various national and international direct selling entities are contemplating establishing their manufacturing and support facilities in the State.

It is pertinent to mention that Telangana was the third State after Chhattisgarh and Sikkim to adopt the Centre's Model Guidelines for Direct Selling Industry. 'Telangana Direct Selling Guidelines Order 2017, was notified by the Consumer Affairs, Food and Civil Supplies Department in December 2017 and provided momentum to the industry thereby resulting in robust performance.