New companies are popping up away from old economic hubs
- Twenty-seven states and UTs, which collectively accounted for about half the new companies formed in 2023-24, have increased their national share in the last five years. Traditional hotspots such as Maharashtra, Delhi, Karnataka, and Telangana have lost share, even though they remain at the top.
Close to 110,000 new companies were set up in the first seven months of the financial year. At this pace the number looks set to surpass the record set last year. Several factors are at play, but the big takeaway from a close look at the data is the gains recorded by smaller, traditionally weaker state economies in the incorporation of new companies in recent years.