Due to strong GDP growth and policy continuity, registration of companies and limited liability partnerships (LLPs) in the country surged by up to 37 per cent in May. According to latest government data, registration of companies increased by 29 per cent and LLPs by 37 per cent on year-on-year basis in May. Data released by the Ministry of Corporate Affairs said that 20,720 companies, including overseas units, were registered in May, up from 16,081 in the same period a year ago.

This was the fifth consecutive month when registration of companies has gone up. About 7,487 LLPs were registered in May. Last year, the number was 5,464. The GDP growth accelerated to a robust 7.4 per cent in the fourth quarter of 2024-25, as result of which the growth rate for the full financial year works out to 6.5 per cent on the back of a strong performance of the agriculture, construction, and services sectors.

The International Monetary Fund (IMF) has forecast India to be the only economy that is expected to clock an over 6 per cent growth rate in 2025-26, as the US tariff turmoil is expected to disrupt world trade and slow down the growth of the global economy. India continues to defy the global slowdown, the OECD’s latest ‘Economic Outlook’ said this week, projecting the country’s economy to grow by 6.3 per cent in 2025 and 6.4 per cent in 2026.

Strong domestic demand, resilient services and manufacturing sectors, and ongoing infrastructure investments have been cited as key drivers for India’s strong performance amid global uncertainties.

According to analysts, India’s better-than-expected GDP growth in Q4 FY25 at 7.4 per cent is an indicator that growth is rebounding which can lead to revival of corporate earnings in FY26, and foreign institutional investors (FIIs) are likely to continue their investment in India. The RBI’s credit policy on interest rates decision on Friday will be keenly watched as any further cut in policy rates would keep markets in good stead in the medium term.