India is right now in the midst of a major golden rush: Entrepreneurship.
As per a recent report by the Ministry of Corporate Affairs, almost 100,000 new companies were registered in India last year!
Never before in the Indian history, has such entrepreneurial fever been witnessed.
As per the report, a total of 98,473 new companies were registered last year, which collectively raised Rs 39,000 crore of capital in different segments of business.
Mainly, business services constituted maximum share of new companies as 32,254 new companies were registered under this category. Point to be noted that ITeS segment, also come under this category.
Manufacturing came in close 2nd position with 14,996 new companies being registered under this category.
Real Estate with 10,752 at #3 category, followed by Trading with 10,646 and Construction with 10,335 new registered companies.
Geographically, Maharashtra topped the charts with 2,83,588 total registered companies, followed by Delhi where 2,61,456 registered companies were present. Surprisingly, its West Bengal which is at #3 position with 1,81,182 total registered companies.
With this, total number of registered companies in India is now 13,94,819 by the end of March, 2014. Out of this, only 9,52,433 are active.
Delhi has maximum number of active registered companies at 1,89,441 while Maharashtra is at #2 rank in activeness with 1,88,768 active companies. West Bengal is at #3 with 1,34,292 active registered companies.
According to the report, 65% of all registered companies had less than or equal to Rs 10 lakh authorized capital. Only 2% or 27,876 registered companies in India have authorized capital of more than Rs 10 crore.
This means that India has a huge pool of small scale entrepreneurs in different segments of the market, but unfortunately very few among them survive beyond 24 months.
Another interesting observation from this report: during the last year, only 216 foreign companies were registered in India. This signifies that the foreign entrepreneurs and investors are still wary of the Indian Government’s assurances regarding investments from abroad.
Mainly offshore investors are gauging the pulse of the nation as elections are currently going on, and they are waiting for the next government’s directives and inclinations towards investments and business policies.