Fadnavis Defends Maharashtra's Industrial Record Amid Company Closures

Chief Minister Devendra Fadnavis on Friday defended Maharashtra's industrial performance amid criticism over the closure of 36,211 private companies in the state over the past five years. According to Fadnavis, 76% of the firms were defunct and had never actually commenced operations.

The issue came into focus after Union Minister Harsh Malhotra informed the Lok Sabha that 36,211 private companies in Maharashtra had been liquidated, dissolved or struck off during the last five years. The figures were cited by Shiv Sena (UBT) MP Rajabhau Waje, who raised concerns over the state's industrial environment.

Fadnavis said the figures should be viewed in their proper context, citing information available with the Ministry of Corporate Affairs. He stated that around 12% of closures were linked to amalgamation, while about 2% had been dissolved.

The Chief Minister also highlighted that India currently has more than 31 lakh registered companies, of which around 21.17 lakh are active. The number of active companies has increased from 6,78,768 in 2015-16 to 21,17,747 currently, representing more than a three-fold rise over the past decade.

Maharashtra continues to lead the country in the number of active companies, with 3,96,211 firms as of June 3, 2026. Delhi follows with 2,72,342 active companies and Uttar Pradesh with 1,85,982. Fadnavis added that around one lakh new companies are registered in India every year, with Maharashtra again topping the list.

The state registered 41,525 new companies in 2025-26, ahead of Uttar Pradesh with 27,494 and Delhi with 20,272. However, the condition of the Chakan industrial area in Pune has emerged as another concern. Around 20 companies, employing more than 2,000 workers, are reportedly considering shifting to Khandala due to traffic congestion, poor roads, power and water issues, and other infrastructure problems.

Fadnavis acknowledged the problems and said Industries Minister Uday Samant had been asked to address them. A meeting involving the district administration, PWD, PMRDA, NHAI, Zilla Parishad and other agencies was held on August 12, following which short- and long-term solutions are being explored.

NCP (SP) chief Sharad Pawar had criticised the government, questioning whether the closure of such a large number of companies had resulted in job losses and whether affected workers had received adequate compensation. Fadnavis' defence of the state's industrial record comes amid growing concerns over the impact of company closures on the economy and employment.

The Chief Minister's statement highlights the need for a nuanced understanding of the company closure data, taking into account the context and reasons behind the closures. As Maharashtra continues to lead the country in the number of active companies, the state government's efforts to address infrastructure concerns and promote industrial growth will be closely watched.

In conclusion, Fadnavis' defence of Maharashtra's industrial record underscores the state's position as a hub for industrial activity, despite the challenges posed by company closures. The government's initiatives to promote new company registrations and address infrastructure concerns will be crucial in maintaining the state's competitive edge in the industrial sector.