Over 167,000 businesses set up in FY 22, the highest in 3 years

The number of businesses set up in the year ended 31 March rose to the highest in three years, led by the services sector, ministry of corporate affairs data showed, signaling a steady rise in entrepreneurial activity despite the disruptions caused by the pandemic.

As many as 167,076 companies were set up in FY22, a 7.5% increase from the 155,377 companies created in the previous year, according to data compiled by the corporate affairs ministry. Around 122,721 companies were set up in FY20.

The steady rise in entrepreneurial activity points to improving sentiment about business prospects and confidence that economic growth will rebound despite the pandemic.

The increase in the number of new businesses is also a good sign for the economy and the jobs market.

“The growth in new registrations has slowed down in FY22. This was expected as the economy opened up and companies started operating, there were job openings across sectors,” said Madan Sabnavis, chief economist at Bank of Baroda.