52,000 new companies opened in India amid lockdown; more firms opened than closed

COVID-19, coronavirus, COVID-19 lockdown, coronavirus lockdown, micro enterprises, India recession, GAME, Global Alliance for Mass Entrepreneurship, LEAD, Krea University Madan Padaki, Indian economy,Prime Minister Narendra Modi on various occasions has reiterated his ‘Make in India’ vision, and has said that local production should be encouraged.

India registered more new companies since the start of the lockdown till August, while the number of companies that shut down in the period were comparatively small. The number of companies registered from April to August 2020 by all Registrar of Companies (ROCs) is 51,807, while only nine companies closed or were struck off during the same period, according to the data provided by MoS Finance and Corporate Affairs Anurag Singh Thakur. However, the applications for setting up of new companies were received prior to Covid period, he said in a written reply to questions in Lok Sabha.

Upon being asked if a large number of companies have been affected by the contraction of the economy due to the recent lock down in the country, the ministry said that “the information regarding contraction of economy due to the recent lock down in the country is not maintained by MCA.” It also said that information regarding unemployment is also not maintained by it.

Further, to help companies tide over the effects of the coronavirus crisis, the government has taken several steps, it said. This includes, providing incentives/ relaxation/concession during Lockdown period so as to reduce the burden of companies/LLPs during Covid-19, enabling Special Provisions for conduct of Board and General Meetings through Video conferences, helping companies file documents without additional fees, grating immunity from prosecutions proceeding, etc and allowing corporates to spend CSR funds for various activities such as healthcare, sanitation and disaster management.

The government has also been pushing for ramping up domestic manufacturing amid an anti-China environment. Prime Minister Narendra Modi on various occasions has reiterated his ‘Make in India’ vision, and has said that local production should be encouraged, the country must import less and focus more on exporting. The same was also expected to help in setting up of more companies and also boost the unorganised sector.

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