New Delhi: Fresh registrations of companies and limited liability partnerships surged in August as investor confidence on India's long-term prospects outweighed near-term growth risks from US tariffs, officials said.
As many as 20,170 companies, including overseas entities, got incorporated in August, a 37% rise from a year earlier, showed the latest corporate affairs ministry data. LLP registrations grew 22% to 6,939. This marked the eighth straight month of increase in company incorporations, while those of LLPs rose for the six month in a row.
This indicates "persistent optimism about the India growth story" amid global turmoil, said a senior government official. "The next few months would be tricky as the extra 50% US tariff on India took effect from August 27," the official said.
The official however affirmed that going forward, fresh domestic reforms, especially in the Goods and Services Tax (GST), would help spur consumption and encourage investors to continue to set up new units, in addition to expanding existing facilities.
"The world-beating GDP growth number (7.8%) in the June quarter should boost investor sentiments further," a second official said.
In July, the International Monetary Fund projected the Indian economy to grow at 6.2% in FY26 and 6.3% in FY27, more than double the global averages. However, with the US now announcing a 50% additional tariff on most Indian goods, some economists have projected a 0.3-0.8 percentage point hit annually to the country's growth. The finance ministry has however retained its FY26 India growth forecast of 6.3-6.8% following the strong June quarter performance.
India is still projected by global agencies to retain its status as the world's fastest-growing major economy this fiscal year and the next.
Moreover, India forged a free trade agreement with the UK in July, and it is currently negotiating trade deals with other key economies, including the EU, to consolidate its position in these markets, apart from ramping up export diversification bids.
Any trade deal with the US, with which negotiations are continuing, could soften the tariff blow, according to analysts.
Meanwhile, sustained government focus on ease of doing business has helped. LLP registrations in recent years have also been boosted by strong services trade, experts said earlier.
Add Now!
As many as 20,170 companies, including overseas entities, got incorporated in August, a 37% rise from a year earlier, showed the latest corporate affairs ministry data. LLP registrations grew 22% to 6,939. This marked the eighth straight month of increase in company incorporations, while those of LLPs rose for the six month in a row.
This indicates "persistent optimism about the India growth story" amid global turmoil, said a senior government official. "The next few months would be tricky as the extra 50% US tariff on India took effect from August 27," the official said.
The official however affirmed that going forward, fresh domestic reforms, especially in the Goods and Services Tax (GST), would help spur consumption and encourage investors to continue to set up new units, in addition to expanding existing facilities.
"The world-beating GDP growth number (7.8%) in the June quarter should boost investor sentiments further," a second official said.
In July, the International Monetary Fund projected the Indian economy to grow at 6.2% in FY26 and 6.3% in FY27, more than double the global averages. However, with the US now announcing a 50% additional tariff on most Indian goods, some economists have projected a 0.3-0.8 percentage point hit annually to the country's growth. The finance ministry has however retained its FY26 India growth forecast of 6.3-6.8% following the strong June quarter performance.
India is still projected by global agencies to retain its status as the world's fastest-growing major economy this fiscal year and the next.
Moreover, India forged a free trade agreement with the UK in July, and it is currently negotiating trade deals with other key economies, including the EU, to consolidate its position in these markets, apart from ramping up export diversification bids.
Any trade deal with the US, with which negotiations are continuing, could soften the tariff blow, according to analysts.
Meanwhile, sustained government focus on ease of doing business has helped. LLP registrations in recent years have also been boosted by strong services trade, experts said earlier.
Add 
as a Reliable and Trusted News Source
as a Reliable and Trusted News Source Add Now!
