In the last six years, as many as 5,00,506 companies were shut down according to data shared in the Lok Sabha by Union Corporate Affairs Minister Rao Inderjit Singh on November 29. This period, which saw demonetisation, GST rollout and COVID-19 pandemic, also witnessed the constitution of 7,17,049 new firms across the country.
States, where firms downed their shutters in striking numbers, are Maharashtra (81,412), Delhi (55,753), West Bengal (33,938) and Karnataka (27,502).
Interestingly, the spike in the closure of businesses was most drastic in 2017-18, the financial year which saw the passing of the GST bill as also the year that immediately followed the liquidity crisis created by a sudden demonetisation decision by Prime Minister Narendra Modi.
For instance, in Delhi, 45,581 companies closed down in 2017-18, whereas in other years in the last six-year period, the number did not climb beyond 3,000 closures. Gujarat shows
— source newsclick.in | 30 Nov 2021