In recent days, the state’s politics has been abuzz with debates over the industrial climate in Maharashtra. The opposition launched a campaign to criticize the government, suggesting that over 36,000 companies have closed down in the state. In response, Chief Minister Devendra Fadnavis provided the actual picture, backed by statistical data, which revealed that despite the increasing competition, Maharashtra held the top position in the country’s industrial sector. Under the leadership of Prime Minister Narendra Modi, the number of active companies in the country has tripled. Maharashtra’s contribution has been maximum to this massive national growth; in 2025-26 alone, 41,525 new companies have registered in the state.
What is the reality of company closures in Maharashtra
From the Central government’s response to an unstarred question asked by Shiv Sena (UBT) MP Rajabhau Waje in the Lok Sabha, it was learnt that 36,211 private companies in Maharashtra had shut down over the last five years. This created the controversy, which was further fueled by some political leaders and social media posts, painting a picture of large-scale industrial decline in the state. NCP president Sharad Pawar also expressed his views on social media, stating that approximately 20 companies in the Chakan Industrial Estate had decided to relocate due to issues regarding traffic congestion, water, electricity, and roads. He noted that this resulted in the loss of jobs for over 2,000 workers. Chief Minister Devendra Fadnavis delivered a strong rebuttal to all these allegations. While responding to the charges, he presented detailed information backed by data and statistics.
Did 36,000 companies really shut down in Maharashtra?
- About 76 percent of the closed companies were ‘defunct’—meaning they never actually commenced operations.
- Around 12 percent of the companies underwent merger.
- Only 2 percent were actually closed down
Excluding the COVID-19 period, an average of 20,000 to 23,000 companies across the country are removed from the register annually through the ‘strike-off’ process. This is a routine administrative procedure. In 2019-20, the Ministry of Corporate Affairs conducted a special campaign and cancelled the registration of approximately 6 lakh inactive companies.
All this information is available on the official website of the Union Ministry of Corporate Affairs.
Maharashtra ranks first in the country
According to data shared by Chief Minister Devendra Fadnavis, there are over 31 lakh registered companies in the country, of which approximately 21 lakh are currently active. In 2015-16, the number of active companies in the country stood at 6,78,768; this figure has now risen to 21,17,747. In other words, the number has more than tripled over the last decade. A state-wise analysis reveals that there are 3,96,211 active companies in Maharashtra, the highest in the country. Delhi stands second with 2,72,000 companies, followed by Uttar Pradesh with 1,85,000. Maharashtra also leads in the registration of new companies; 41,525 new companies were registered in the state during 2025-26. During the same period, 20,000 companies were registered in Delhi and 27,000 in Uttar Pradesh.
Concrete steps are being taken to address issues within the Chakan MIDC area.
Immediate measures have been undertaken to resolve these problems. Acting on the Chief Minister’s directives and considering the rising traffic in Chakan and surrounding industrial zones, a joint meeting was held involving the MIDC and all relevant agencies, including the district administration, Public Works Department, PMRDA, National Highways Authority, and the District Council, in which a high-level committee was formed to act on several short-term and long-term plans, formulated to address and resolve severe traffic gridlocks, pothole issues, and other infrastructure issues in Pune’s industrial and IT corridors, specifically focusing on the Chakan MIDC and Hinjawadi IT Park regions. Furthermore, in light of the expanding industrial landscape and the growth of Global Capability Centers (GCCs) in Pune district, an ‘Industry Grievance Redressal Cell’ is to be established at the Pune District Collectorate to expedite the processing of pending industrial approvals and permits. These comprehensive measures have reassured the industrial sector of the industry-friendliness of the Devendra Fadnavis government.
Maharashtra has consistently maintained an industry-friendly policy. Thanks to its robust infrastructure, skilled workforce, industry friendly policy, and administrative support, the state continues to attract significant foreign investment. In fact Foreign Direct Investment in Maharashtra is highest in the country, and the proactive government is doing its best to hold its position.
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