The heart-wrenching reality unfolds: On June 3, the lifeblood of impoverished individuals—the humble bicycle-manufacturing factory—came to a screeching halt. This fateful day, celebrated globally as ‘World Bicycle Day’, bore witness to the sudden demise of countless livelihoods when Atlas Cycle unit at Sahibabad was shut down. Since 2014, a relentless wave of factory closures has swept across India, leaving many workers without employment. Now, mere survival has transformed into an agonizing battle for the impoverished individuals of this nation.
India, once a beacon of vibrant economic growth, now bears the scars of a tumultuous journey. From January 2015 to January 2024, an unprecedented number of company closures swept across the nation. This cataclysmic phenomenon spared neither the mighty corporations nor the humble factories and small-scale manufacturing units. The ripple effect reverberated through the very fabric of our workforce, leaving countless lives in its wake.
Company Closures in India
January 2024 unveiled a grim reality: over 855,000 establishments in India became dormant or were deregistered. Concurrently, approximately 33,000 firms underwent the process of amalgamation or merger. The cumulative tally of closed businesses across the nation reached a staggering 924,000.
With an end goal to facilitate corporate ways out, the Ministry of Corporate Affairs presented the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2023. This essential move planned to smooth out and speed up the intentional liquidation process, slicing the timetable from roughly two years to a simple a half year.
Unlike scooters and motorcycles, there are currently no loans available for purchasing bicycles. Even though the cost of basic bicycles can be as low as 4,000 rupees ($50), the affordability of motorized two-wheelers is enhanced by loans, which encroach on the potential customer base for bicycles. In reality, the BJP government has not taken any tangible measures to address this issue concerning India’s underprivileged population.
Closure of Factories and Small-Scale Manufacturing Units
The shutdown of factories and small-scale production facilities has emerged as a major issue. Announcements of closures have come from companies such as Ford, 
Toyota, Maruti Suzuki, Hero Moto, and Honda Motorcycles and Scooter India (HMSI). Meanwhile, other firms including Havells, Nippon Paints, Panasonic, Mercedes-Benz, Mahindra & Mahindra (M&M), LG (Pune factory), and Tata Motors have reported a decrease in production.
Impact on the Workforce
The shuttering of businesses, factories, and small-scale manufacturing units has deeply affected the labor force, leading to job losses for thousands of employees. The IT sector, once a beacon of hope for the middle class, experienced a 25 percent decline in recruitment compared to the previous years i.e before 2019. The top four IT companies in India added a mere 1,940 employees in the third quarter, marking the lowest increase in the past eight quarters i.e. 2021.
Additionally, nearly 5,000 individuals were laid off by Indian startups in 2023. The surge in layoffs, coupled with decreasing job opportunities and evolving work trends, has brought about significant challenges for Indian IT professionals.
Conclusion
The shutdown of businesses, factories, and small-scale manufacturing units in India between 2015 and 2023 has profoundly impacted the labor force. Although the government has initiated measures to hasten corporate exits, the repercussions on employees who have been laid off due to these closures are extensive. It is imperative to devise strategies and policies that can alleviate these impacts and offer assistance to the displaced workforce.
In conclusion, the evolving corporate environment in India has influenced hundreds of thousands of companies, resulting in closures, mergers, and consolidations. These transformations have wider implications for both the economy and individual welfare.