India's entrepreneurial landscape is experiencing a remarkable surge, with official data revealing the addition of more than 1.85 lakh companies during the last fiscal year, marking a significant uptick compared to the previous period.
The statistics, released by the corporate affairs ministry, underscore a robust expansion in business registrations, reflecting a dynamic economic environment and burgeoning entrepreneurial spirit.
According to the data, an impressive 16,600 companies were established in March 2024 alone, indicating sustained momentum in business creation despite prevailing challenges. At the close of March 2024, India boasted a total of 26.63 lakh registered companies, out of which 64 per cent were considered active, highlighting the resilience and vibrancy of the country's corporate sector.
However, amidst this growth, the data also revealed a churn in the business landscape, with over 9.31 lakh registered companies closed, 2,470 dormant entities, and 10,385 companies undergoing liquidation. Additionally, 27,022 companies were in the process of being struck off from official records, reflecting the dynamic nature of business operations and regulatory compliance.
The surge in company registrations was predominantly observed in the services sector, which accounted for 71 per cent of new enterprises, followed by the industrial segment at 23 per cent and agriculture at 6 per cent. Notably, community, personal, and social services witnessed the highest rise of 11 per cent within the service sector, indicating evolving market trends and consumer demands.
Maharashtra emerged as a key hub for new business establishments, with 17.6 per cent of the new companies set up in the state during the fiscal year 2023-24, reaffirming its status as a preferred destination for business growth and investment.
Moreover, the data highlighted a steady increase in the proportion of active companies compared to the previous year, underlining sustained economic vibrancy and business resilience. As of 31 March 2024, there were a total of 5,164 foreign companies registered in the country, with 64 per cent considered active, reflecting India's attractiveness as a destination for foreign investment and business expansion.
In March 2024, a total of 42,041 Director Identification Numbers were registered, with 67% of registered directors being male and 33 per cent female. Furthermore, 43 per cent of newly registered directors belonged to the age group of 31-45 years, underscoring the diverse demographics contributing to India's corporate leadership.
As India continues to foster a conducive environment for business growth and innovation, stakeholders remain optimistic about the country's economic trajectory, even as challenges persist. With the government implementing the Companies Act, 2013, and facilitating conducive policies, India's entrepreneurial landscape is poised for further expansion and dynamism in the years ahead.
