The rise in exits in 2021 and 2022 could largely be attributed to the slump that followed the covid-19 pandemic’s sweep through the country, forcing a nationwide lockdown in 2020. Crippled finances, a shortage of labour, supply-chain issues, among other problems, forced many of these entities to wrap up their operations.

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Between 2019 and 2021, in Delhi and neighbouring regions, around 40% of the business owners shut shop, according to a National Council of Applied Economic Research study. Another estimate showed more than 10,000 businesses voluntarily winding up operations amid the hopelessness triggered by the pandemic.

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