"Reviewing the Regulatory Framework for the Direct Selling Companies in India"
- Nirupama Soundararajan and Arindam Goswami
"Achieving Trade Competitiveness Through Air Express"
- Gunja Kapoor
In spite of a steady growth and a steadier contribution to the economy, the direct selling industry is often misunderstood and criticised for exploiting customer’s naiveté. In fact, lack of understanding of business operation, particularly among law enforcement agencies, have culminated in initiating legal proceedings against many legitimate direct sellers. Apart from this, various other factors such as lack of regulations in the industry, lack of clarity of the business model among public, and existence of too many fly by night operators had time and again pulled back the industry’s growth. In 2016 the Department of Consumer Affairs (Government of India) issued Direct Selling Guidelines which was expected to bring clarity and transparency in regulation of direct selling. Despite of this, the industry still have to prove its legitimacy from time to time. This study aims to understand the regulatory challenges that besiege the industry today and steps that can be taken to make the sector more competitive so that the potential of the sector can be channelised for the growth of the economy.
India ranks 35 in Logistics Performance Index (LPI), compared to China at 27, Taiwan at 25, and Japan at 12. India’s merchandise trade to GDP ratio was 38.5 per cent in 2014 and 31.8 per cent in 2015, reflecting a high cohesion with the global economy. Global trade has burgeoned, by leveraging technology and air express for just in time manufacturing and time bound delivery. Air express not only allows companies to expand their trade footprint irrespective of geographical constraints, it also ensures customer satisfaction through high speed product services.. However, in the absence of a conducive regulatory framework, it would not be possible for the industry to meet the desired goals and become globally competitive. Regulatory challenges involve complex customs processes, limited automation, absence of an end-to-end air express policy, and approval from multiple ministries. Against this backdrop, it is imperative to deliberate solutions and potential policy support that would make the Indian air express industry globally competitive.