Maharashtra Chief Minister Devendra Fadnavis has rejected the impression that thousands of functioning businesses have shut down in the state, responding to concerns raised by NCP (SP) chief Sharad Pawar over the reported closure of 36,211 companies.
Fadnavis said the figure presented in Parliament needs to be understood in the correct context. According to him, a large majority of the companies classified as closed were already defunct and had never started business operations.
Fadnavis explains what the ‘closed companies’ figure means
In his response to Pawar, Fadnavis said around 76% of the companies listed as closed were defunct entities.
He argued that the number should therefore not automatically be treated as a count of active factories, businesses or industrial units that had shut down.
He also pointed to the overall growth in the number of active companies in India.
According to the figures cited by the Chief Minister, the number of active companies across the country increased from 6,78,768 in 2015-16 to 21,17,747 by June 2026.
That represents more than a threefold increase over the period.
Maharashtra has the highest number of registered companies
Fadnavis also highlighted Maharashtra’s position among Indian states.
As of June 3, 2026, Maharashtra had 3,96,211 registered companies, according to the figures cited by him.
Delhi was next with 2,72,342 companies, followed by Uttar Pradesh with 1,85,982.
Fadnavis said the numbers demonstrate that Maharashtra continues to have the country’s largest base of registered companies.
Why are companies removed from the register?
The Chief Minister also explained that a company being removed from the official register does not necessarily mean that a functioning business has closed down.
He said that, outside the Covid period, roughly 20,000 to 22,000 companies are removed or closed every year.
Of these cases, Fadnavis said around 76% were defunct companies. Around 12% were linked to amalgamation, while approximately 2% involved dissolution.
He also referred to a major exercise carried out by the Ministry of Corporate Affairs in 2019-20, when around six lakh companies were struck off.
Fadnavis said such exercises show why the raw number of companies removed from the register should not be interpreted as the number of operating businesses that have stopped functioning.
Maharashtra registered over 41,000 new companies
Fadnavis also highlighted the number of new companies being created.
He said around one lakh new companies are registered in India each year.
Maharashtra recorded 41,525 new company registrations in 2025-26, according to the figures cited by the Chief Minister.
Other major states and regions recorded:
- Delhi: 20,272
- Uttar Pradesh: 27,494
- Karnataka: 17,857
- Tamil Nadu: 17,024
- Telangana: 17,300
- Gujarat: 14,666
- West Bengal: 10,598
Pawar raises alarm over Chakan industries
The debate comes after Sharad Pawar raised concerns about the industrial situation in Maharashtra.
Pawar had said that 20 companies in the Chakan industrial area were planning to relocate because of problems including traffic, pollution, water supply, electricity and roads.
He said these companies employed more than 2,000 workers and urged the state government to intervene before businesses moved out of the region.
Fadnavis admits Chakan has problems
While defending Maharashtra’s overall industrial position, Fadnavis acknowledged that Chakan is facing infrastructure-related difficulties.
He said Industries Minister Uday Samant had been asked to address the problems.
A meeting involving the district administration, Public Works Department, PMRDA, NHAI, Zilla Parishad and other agencies was held on August 12, according to Fadnavis.
The government has prepared both immediate and longer-term measures to tackle the problems, he said.
Fadnavis also made clear that the government wants to prevent industries from leaving the area.
Maharashtra’s industrial future becomes political issue
The exchange between Pawar and Fadnavis highlights two different views of Maharashtra’s industrial situation.
Pawar has focused on infrastructure problems and the possibility of companies shifting operations outside the state, particularly from industrial belts such as Chakan and Talegaon.
Fadnavis, meanwhile, has pointed to Maharashtra’s large number of registered companies and strong pace of new registrations to argue that the state remains India’s leading industrial destination.
The immediate challenge for the government will be addressing infrastructure problems in industrial areas while ensuring that existing companies continue operating and new businesses keep coming to Maharashtra.
