India Creates Least Number of Cos in Four Years in FY22

Last fiscal, India created the least number of companies in four years, at 96,657, though the impact of the economy’s reopening was evident in the ostensibly modest data set. Sector benefiting from the end to mobility and operational curbs – such as agriculture and allied activates, transport activities and travel agencies, hotels and restaurants, constructions, and machinery and equipment – led the list of segments opening new establishments in FY22. The fiscal saw a 30% year- on- year share ink age in companies involved in the manufacturing of food product and beverage, health and social work, retail trade, computers and real-estate – sectors that had witnessed an exceptional surge in new companies in FY21, data sourced from Prime Database showed. “The reasons for the drop in the number of new company incorporations are likely to be the same as reasons for the sudden jump in the midst of COVID,” said Shashwat Alok, assistant professor, finance, Indian School of Business. “Possibly, the economy is getting back on track, with more job opportunities. So the flight to entrepreneurship in absence of suitable job opportunities has diminished.”

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