UP outpaces Delhi in new company registrations, trails only Maharashtra: Report

Maharashtra continued to lead with about 21,000 new companies added in this timeframe, The Economic Times reported.

Uttar Pradesh has emerged as a rising hub for new business incorporations, surpassing Delhi in the first ten months of the current fiscal year and ranking second only to Maharashtra, according to a report by The Economic Times.

Between April 2024 and January 2025, Uttar Pradesh registered 15,590 new companies, while Delhi saw 12,759 incorporations during the same period, data from the Ministry of Corporate Affairs revealed. Maharashtra continued to lead with about 21,000 new companies added in this timeframe, The Economic Times reported.

The rise in company incorporations reflects growing investor confidence in Uttar Pradesh's economic prospects, backed by factors such as improved law and order, enhanced ease of doing business, and a large pool of affordable labor, experts and a state government official told The Economic Times. The state’s economic growth, which has ranged between 7.5% and 11.4% since 2021-22, has outpaced the national average.

Proximity to Noida — a major industrial hub — has also boosted Uttar Pradesh’s appeal to investors, especially as real estate costs in the region are lower compared to Delhi, a government official said.

Despite the surge in new incorporations, Delhi still leads Uttar Pradesh by a significant margin in terms of operational or "active" companies. As of January 2025, Uttar Pradesh housed 1,50,703 active firms, compared to 2,50,162 in Delhi and 3,46,555 in Maharashtra, The Economic Times reported.

Uttar Pradesh's recent momentum has allowed it to surpass West Bengal, Tamil Nadu, and Karnataka in the past five years, making it the third-largest state for active businesses in the country.

With a population exceeding 240 million, Uttar Pradesh presents a vast consumer base and a significant working-age demographic, estimated at 55-56% of the population. This sizeable workforce is expected to continue driving consumption and attracting investments.

The state is actively promoting both its traditional agriculture-based industries and emerging sectors to sustain its economic growth, a senior government official told The Economic Times.