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Map: Indian states with the highest and lowest number of private companies

Northeast India has the least number of active private companies.
Published This article is more than 2 years old.

Apart from being the capital of India, New Delhi also seems to be the corporate capital of the country.

It had the highest number of active private companies in 2014, followed by Maharashtra. These two regions together have almost 40% of all the active private companies in the country, according to data from the ministry of corporate affairs (MCA). Active companies are firms with ongoing operations.

Mizoram and the union territory of Lakshadweep have the least number —16 and 10 respectively—of private companies.

In 2014, there were a total 952,433 active companies in India, out of which 93.28% were private and the rest public.

The data from the MCA includes companies with a registered office in these states. Sikkim is not included in the analysis since it is not covered under the Companies Act, 1956, and has a separate act governing firms registering in the state.

The top two states, New Delhi and Maharashtra, have traditionally been corporate hubs. Major industries in New Delhi include banking, financial services and insurance, processed food, construction and real estate, information technology, and tourism. Agriculture and related industries, followed by pharmaceuticals, biotechnology, information technology, electronics, engineering, automobiles, petrochemicals, oil and gas and textiles dominate in Maharashtra.

The northeast region of the country has fewer industries because of lack of infrastructure (pdf) such as good roads and regular supply of power.

“The problem with these regions is that they lack demand due to low income levels and it is very challenging to find qualified labour, plus there is low public investment by the government,” said Madan Sabnavis, chief economist at CARE Ratings, a credit rating agency.

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