India’s direct selling industry reaches Rs 23,522 crore in FY25

MUMBAI: India’s direct selling industry is proving that the road to business can begin with a conversation, not a corner office. The sector reached Rs 23,522 crore in FY25, growing at a compound annual growth rate (CAGR) of 7 per cent, as more Indians turned product sales into a source of income, according to a report by the Association of Direct Selling Entities of India (ADSEI) and Kantar.

Released at Bharat Mandapam, the ADSEI Direct Selling Industry Report estimates that 91 lakh Indians are active direct sellers, with women accounting for 47 per cent nearly 43 lakh people. The industry is projected to cross Rs 25,000 crore by the next fiscal year, while India ranks 11th among the world’s top 15 direct selling markets.

The model offers a relatively low-capital route into entrepreneurship, with flexible working hours and no formal qualification requirements. These features have made it particularly relevant to women and aspiring entrepreneurs in semi-urban and rural areas, where access to conventional employment and business opportunities may be limited.

Women’s participation is a defining feature of the sector, with nearly 43 lakh women among the country’s active direct sellers. The report also found that around 69 per cent of sellers are aged between 25 and 44, placing much of the workforce in a key earning and family-building stage of life.

More than 32 per cent of active sellers reported consistent month-on-month income from direct selling. Training and onboarding programmes are also helping participants develop sales, communication, financial literacy and small-business management skills.

ADSEI president Dr Sanjeev Kumar said the industry supports livelihoods for more than 91 lakh people, nearly half of them women, and aligns with the government’s focus on self-employment, skilling and women-led development.

“ADSEI will remain a committed partner to the government in deepening compliance and consumer trust,” he said.

Gautam Bali, patron of ADSEI, said direct selling provides an income opportunity to people who may otherwise have limited access to formal employment. Earnings can help households meet expenses such as children’s education and healthcare, while also supporting savings.

Bali called for stronger training and governance to help sellers sustain their businesses and build consumer confidence.

The industry’s growth is concentrated in a few product categories. Wellness, personal care and cosmetics together account for more than 86 per cent of total direct selling sales, according to the report.

North India is the largest regional market, with a 26.8 per cent share, followed by West India at 24.5 per cent. The figures underline the importance of regional demand in shaping the sector’s overall performance.

The report also identified the Consumer Protection (Direct Selling) Rules, 2021, as an important step towards formalising the industry and establishing clearer operating guidelines. Direct sellers surveyed said existing policies had positively influenced the sector and expressed optimism about its growth prospects over the next two years.

With the market projected to move beyond Rs 25,000 crore next fiscal year, the next phase will depend not only on recruiting more sellers but also on sustaining their earnings and protecting consumers.

Direct selling offers a flexible route to income, but the report’s emphasis on training, governance and compliance highlights the need for sellers to operate responsibly and maintain transparent business practices.

The industry’s expanding scale and substantial participation by women point to its potential as a livelihood channel. Whether that growth translates into durable entrepreneurship will depend on how effectively businesses pair opportunity with skills, accountability and consumer trust.