New Delhi, April 7 -- India's formal economy is expanding rapidly, led by technology and trade businesses, with artificial intelligence increasingly emerging as a branding and business driver.

Data from the ministry of corporate affairs (MCA) shows IT companies and wholesale and retail trade firms topped new company registrations in each of the 12 months ending March 2026. The trend underlines not just entrepreneurial activity, but a deeper shift towards digitalization and formalization.

In FY26, over 247,500 companies were registered-up 31% from more than 189,400 companies in the previous year. At the end of March 2026, India had over 2 million active companies.

Every 11-13 companies out of 100 newly registered each month were in the ...