UP Emerges as Second-Highest State for New Business Registrations

Uttar Pradesh has surpassed Delhi to become the state with the second-highest number of new company registrations in fiscal year 2025, according to recent data from the corporate affairs ministry, reported Economic Times.

Between April 2024 and January 2025, UP registered 15,590 new companies, compared to Delhi's 12,759. Maharashtra continues to lead with approximately 21,000 new companies during the same period.

This surge in business formation reflects growing investor confidence in UP's medium to long-term economic prospects. Experts attribute this trend to several factors: the state's strong economic growth rate of 7.5-11.4% since 2021-22 (exceeding the national average), its vast consumer base of over 240 million people, improved law and order, and enhanced focus on ease of doing business.

The proximity of Noida, a key industrial center in UP, to the national capital has also attracted businesses seeking lower real estate costs compared to Delhi.

While Delhi still maintains a larger base of operational companies at 250,162 versus UP's 150,703, UP has made significant progress over the past five years, overtaking West Bengal, Tamil Nadu, and Karnataka to become the third-largest state for active businesses.

UP's economic strategy includes promoting both traditional agriculture-based industries and new sunrise sectors. The state government has implemented sector-specific policies and financial incentives targeting various industries including food processing, handlooms, electronics, tourism, solar energy, and pharmaceuticals.

With 55-56% of its population in working age, UP continues to offer both a robust consumer market and a large labor force.