In January, India saw 10,081 LLPs incorporated, a sharp 60% increase from last year, according to the corporate affairs ministry. Company registrations also climbed 39% year-on-year to 23,276. An official, speaking on condition of anonymity, said, "Incorporations of companies and LLPs are significantly driven by sentiments as well. Until now, they were being driven mainly by strong domestic growth prospects." India’s new trade deals with the US and the European Union, granting zero duty or preferential access to markets worth $53 trillion, have boosted business confidence. "The trade deals would allay concerns over US tariffs, further cement the country's medium-term growth prospects, bolster its both manufacturing and services trade outlook and encourage investors to set up units," the official added. GST cuts and income tax relief this fiscal year have increased consumption and growth hopes, supporting more company formations. From April to January, 76,696 LLPs were set up, marking a 41% increase over the previous year. Company registrations hit a record 2,01,184 during the same period, also up 41%. Foreign companies entering India rose to 78 from 45 a year earlier. Shankey Agrawal, partner at BMR Legal, explained the rise: "Ease and affordability of starting a business have pushed up company incorporations. Moreover, due to the deregulation and decriminalisation of minor corporate defaults, compliance costs and the fear of penalties have diminished." This is boosting business confidence and pushing more businesses to formalize, he noted. Tahira Karanjawala, partner at Karanjawala & Co., said, "Optimism surrounding consumption prospects, spurred by measures like GST cuts, etc., have also encouraged entrepreneurs to set up new ventures." India’s vast, skilled, and low-cost workforce is another key factor driving incorporations. The International Monetary Fund recently raised India’s growth outlook for 2026 to 7.3% from 6.6%, predicting the country will remain the fastest-growing major economy for at least two years.