Daijiworld Media Network - New Delhi
New Delhi, Mar 5: India has witnessed a significant rise in new business registrations, with numbers increasing by 27 per cent from 1.55 lakh in 2020–21 to 1.98 lakh during the first ten months of 2025–26 (as of February 3, 2026), reflecting the impact of economic reforms aimed at improving the business environment, according to an official government factsheet released on Thursday.
The government said the Union Budget 2026–27 introduces additional measures designed to further strengthen the ease-of-doing-business ecosystem. These include initiatives focused on digital trade facilitation, greater tax certainty, reduced compliance requirements and litigation, trust-based customs systems, and a more investment-friendly tax framework.
Officials highlighted that several institutional reforms have contributed to creating a transparent and technology-driven environment for businesses. Key initiatives such as Start-up India, the Credit Guarantee Scheme and digital credit assessment models have helped build a more investor-friendly ecosystem.
These efforts have been supported by regulatory reforms including the Jan Vishwas Act, the Insolvency and Bankruptcy Code (IBC) and provisions related to Minimum Alternate Tax (MAT), which aim to strengthen governance, improve regulatory consistency and promote a trust-based administrative system.
India’s startup ecosystem has also expanded rapidly. According to the factsheet, more than 2.16 lakh startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) were registered as of February 2026, making India one of the largest startup hubs in the world.
Regulatory reforms introduced since 2016 have focused on simplifying compliance processes, improving access to capital and making it easier for entrepreneurs to start and grow businesses. In addition to Start-up India, several other initiatives have encouraged technological innovation, rural entrepreneurship, academic research and regional inclusion, ensuring that startup support is widely distributed across the country.
Business sentiment indicators also suggest continued confidence among companies. The RBI Business Expectations Index has remained above the neutral benchmark of 100 through the financial year 2024–25 and into the July–September quarter of 2025–26, signalling positive expectations regarding future output, employment and investment.
Officials said these trends reflect strong industry confidence and a stable business environment where firms remain optimistic about demand and growth prospects.
In recent years, India has increasingly emerged as a preferred destination for investment and business activity. The government’s reform-led growth strategy focuses on encouraging entrepreneurship, improving access to finance, modernising regulatory systems and strengthening trade facilitation.
Together, these initiatives aim to improve the ease of doing business, expand financial inclusion, accelerate growth in the MSME sector, foster innovation and strengthen India’s position as a competitive global hub for trade and investment.