Hindustan Times ST (Jaipur)
Co registrations duck the 2nd wave
NEW DELHI: The second wave of the Covid-19 pandemic had little effect on entrepreneurship, unlike the first wave which had a huge impact, official data on the incorporation of companies showed.
In April, 12,554 companies were set up in the country, compared with the 3,209 set up in the same month a year ago when a national lockdown was in place to fight the pandemic.
In March 2021, the number of companies set up had risen to 17,324 when compared with the 5,788 set up in March last year. The March 2021 figure is the highest since January 2013 and is despite the mobility restrictions imposed in various parts of the country to fight the pandemic. In the first two months of this calendar year, too, the number of companies incorporated were in double digits, at 10,924 and 14,094, respectively, data from the corporate affairs ministry showed.
Incorporation of companies, the most popular legal form for doing business, indicates intent to invest, though actual economic activity may be influenced by a lot of factors.
Large state economies account for the bulk of companies registered every month. Maharashtra led the field with the formation of close to 2,300 companies. The state, along with Delhi, Uttar Pradesh, Karnataka, Tamil Nadu, and Telangana accounted for 60% of the companies incorporated in April.
Among sectors, services accounted for 63% of all companies set up in April. Companies set up in the agriculture and allied services segment in April accounted for 7% of all new companies, a growing area of investor interest, with a normal monsoon remaining a positive trigger for the rural economy. This segment accounts for about 4% of the overall 1.35 million active companies in the country.