India creates least number of companies in four years in last fiscal
During the FY 2021-22, India created the least number of companies in comparison to last four years. This is a 30% year-on-year decline in aggregate company formation. There was a year-on-year shrinkage in companies involved in the manufacturing of food products and beverages, health and social work, retail trade, computers and real estate - sectors that had witnessed an exceptional surge in new companies in FY21. A state-wise comparison showed that Telangana, Kerala, Karnataka, Delhi and Haryana posted the most significant on-year declines - between 35% and 38% - in new company formations. Maharashtra, with the highest number of new companies formed, posted a drop of 26% over the previous year. In FY 2018-19, no. of companies formed were 1,05,099, In FY 2019-20, no. of companies formed were 1,03,064, In FY 2020-21, no. of companies formed were 1,38,314, and In FY 2021-22, no. of companies formed were 96,657.
