India's formal economy is rapidly expanding, particularly in the technology and trade sectors, with over 247,500 new companies registered in the financial year ending March 2026, reflecting a 31% increase from the previous year. Data from the Ministry of Corporate Affairs (MCA) indicates that IT firms and wholesale and retail trade businesses have consistently topped new registrations each month. The rise in AI-focused companies is notable, with the number of firms mentioning 'AI' in their names increasing from 84 to 120 per 10,000 registrations by March 2026. This trend signifies a broader adoption of artificial intelligence across various sectors, including health and education. Additionally, fixed asset investments surged to ₹103.3 trillion (approximately $1.25 trillion USD) in FY26, marking a 7.1% annual growth. Despite this growth in formal registrations, the informal economy remains substantial, with 79.2 million unincorporated enterprises reported, highlighting the dual nature of India's economic landscape.