According to a study given by Dun & Bradstreet on Wednesday, the agriculture industry had the most vital 103 % increase in new business registrations, with 12,368 in FY 2021, up from 6,107 the previous fiscal. According to the written report on ‘Business Dynamism in India,’ the manufacturing sector saw 39,539 registrations in FY21, up from 26,406 in FY20, a 50 % boost in keeping with the report, a complete of 1, 95,880 enterprises were registered in FY21, which could be a new high.
While the agriculture sector saw 12,368 sign-ups in FY21 compared to six,107 in FY20, the services sector did well in growth, with 83,079 registrations in FY21 and a 14 % rate, in keeping with the study. Despite the pandemic and obeying rounds of lockdown, the birth rate of recent enterprises increased at a healthy rate, rising from 7.8% in FY16 to 10.2% in FY20 and so to 11.6 % in FY21. Agriculture production (crops), food and associated, product manufacturing wholesale of non-durable items, chemicals manufacture, social services, educational services, and computer-related services all saw large increases in registrations, in step with the research.
During the year, business registrations in sub-sectors such as wholesale trade of durable goods, transportation services, repair services, restaurants, bars, and so on decreased significantly. The number of firms registered outside of major cities like Mumbai, New Delhi, Bangalore, and Chennai is on the rise.
In FY21, the top ten cities accounted for only 42% of new business registrations, down from 55% in FY17.
While the pandemic drastically altered the business landscape, it also presented an opportunity, and many enterprises took advantage of the changing trends, increasing business registrations. According to Avinash Gupta, Managing Director & CEO (India) of Dun & Bradstreet, some 1, 95,880 enterprises were registered in FY21, a new thrill.
According to him, the majority of newly registered firms are centred in sectors that experienced a pandemic-induced surge in demand, with 96% of newly registered businesses having a paid-up capital of up to Rs 10 lakh.
However, according to Gupta, Dun & Bradstreet’s research shows that enterprises in this category have had a low historical survival rate. As a result, Business that partner with such ventures must keep a close eye on their portfolio and set up red flag alerts to protect their capital,? he explained.
Arun Singh, the firm’s Global Chief Economist, said the pandemic has changed the way businesses do business. Companies in India are becoming more dynamic and competitive as a result, although the impact is variable.
According to Singh, some Industries , such as food and associated product production, computer-related services, educational services, and so on, have seen a substantial increase in business registrations.