Farm Sector Records New Business Registration Growth at 103 percent in 2021

According to a paper released by Dun & Bradstreet on Wednesday, the agriculture sector has recorded the highest 103% growth in new business registrations at 12,368 in financial year 2021 as compared to 6,107 in the previous year.

According to the White Paper on "Business Dynamism in India," the manufacturing sector recorded 39,539 registrations in FY21 from 26,406 in FY20, which shows a growth of 50%. 

The paper explained, "While the agriculture sector observed12,368 registrations in FY21 compared to 6,107 in FY20, the services sector also fared well with the highest number of registrations at 83,079 in FY21 and witnessed a growth rate of14 per cent".

The rate of new established businesses has grown steadily, from7.8% in FY16 to 10.2% in FY20 and even 11.6% in FY21, despite waves of pandemic and subsequent lockdown. 

The report received significant new registrations for sub-sectors such as agricultural production (crop), food and similar product manufacturing, wholesale of non-durable goods, chemical manufacturing, social services, educational services, and computer-related services. 

Sub-sector such as wholesale durable goods, repair services, transportation services, restaurants and bars have significantly reduced business registration during these years. 

An increasing proportion of businesses are registered outside the mainstream regions such as Mumbai, New Delhi, Bangalore and Chennai. 

"While the pandemic changed the business landscape dramatically, it presented itself as an opportunity, and many businesses capitalized on the evolving trends, leading to an increase in business registrations. About 1,95,880 businesses were registered in FY21, a record high," Dun & Bradstreet Managing Director & CEO (India) Avinash Gupta said. 

Most of the newly registered businesses are determined in sectors that have witnessed a surge in demand due to infectious diseases, and 96% of newly registered companies have paid-up capital of up to Rs.10 million, he said. 

In some areas, such as the manufacture of food and kin products, computer-related services and educational services, business registrations are growing well, he added. 

Source - TOI