A New Dawn for India-UK Ties: The Transformative Potential of the FTA

 A New Dawn for India-UK Ties: The Transformative Potential of the FTA

The ink is barely dry on the landmark Free Trade Agreement (FTA) between India and the United Kingdom, signed in London on July 24, 2025, yet its ripple effects are already set to reshape the economic landscapes of both nations. Hailed as a pivotal moment in bilateral relations, this comprehensive pact is far more than just a trade deal; it's a blueprint for deeper economic integration, robust growth, and shared prosperity.

Near Total Duty-Free Access for India (99% of goods): This is a cornerstone of the agreement for India. It means that almost all products India exports to the UK – from textiles and footwear to gems, jewellery, and auto components – will enter the British market without incurring any tariffs. This immediately makes Indian goods more competitive, as many currently face UK duties ranging from 4% to 16%.

Significant Tariff Reductions for UK Exports (90% of goods, 85% duty-free within 10 years): India, in turn, has committed to reducing tariffs on a substantial portion of UK goods. While some reductions are immediate, a large percentage (85%) will gradually become entirely duty-free over a decade. This aims to make UK products more affordable and accessible for Indian consumers and businesses.

Boost to Bilateral Trade (projected £25.5 billion increase, $120 billion by 2030): The primary objective of the FTA is to significantly increase the volume of trade between the two nations. The projected £25.5 billion (approximately $34 billion) annual increase in bilateral trade and the ambitious goal of doubling trade to $120 billion by 2030 underscore the economic potential unleashed by the agreement.

Reduced Tariffs on UK Spirits (Whisky and Gin): This is a major win for the UK. Tariffs on iconic British spirits like whisky and gin, which were previously as high as 150%, will be halved to 75% immediately and further reduced to 40% over ten years. This makes them significantly more affordable for Indian consumers, a large and growing market.

Lower Tariffs on UK Automotive Products: India will reduce tariffs on certain UK-made vehicles from over 100% to 10%, albeit under a quota system. This is particularly beneficial for high-end British car manufacturers like Jaguar Land Rover, Aston Martin, Bentley, and Rolls-Royce, making their luxury vehicles more competitive in the Indian market.

Easier Mobility for Indian Professionals (Social Security Exemption, Service Sector Access): This point addresses a long-standing demand from India. The exemption of 75,000 Indian workers from UK social security payments for three years saves them and their employers significant costs. Furthermore, granting access to 36 service sectors without an Economic Needs Test and allowing Indian professionals to work in 35 UK sectors for up to two years streamlines the process for skilled Indian workers.

Duty-Free Access for Indian Textiles and Apparel: This is a crucial aspect for India's labour-intensive textile sector. By eliminating duties across 1,143 product categories, the FTA levels the playing field for Indian textile and clothing exporters, who previously faced tariffs ranging from 4% to 12%, allowing them to compete more effectively with countries that already have preferential access to the UK market.

Benefits for Indian Marine Products: The removal of all tariffs on marine products (previously up to 20%) creates a substantial export opportunity for India. This directly benefits Indian fisheries and seafood processing industries, with products like shrimp, tuna, fishmeal, and feeds gaining significant competitive advantage in the UK market.

Support for Indian Agricultural Products: Over 95% of India's agricultural and processed food items, including traditional spices (turmeric, pepper, cardamom), fruits, vegetables, cereals, mango pulp, pickles, and pulses, will gain duty-free access to the UK. This is expected to boost agricultural exports by over 20% in three years and supports India's goal of $100 billion agri-exports by 2030.

Growth in Indian Engineering Exports: With duty-free access for engineering goods (the largest category with 1,659 tariff lines), India's engineering exports to the UK are expected to surge. This includes machinery, equipment, and auto components, which will see higher demand due to their reduced cost.

Duty Elimination on Indian Pharma & Medical Devices: This is strategically important for India's robust pharmaceutical industry. Generic medicines and various medical devices (e.g., ECG machines, X-ray systems, surgical instruments) from India will now enter the UK market without tariffs, making them more cost-effective and increasing India's share in the UK's substantial pharmaceutical import market.

Increased Chemical and Plastic Exports from India: Indian chemical exports to the UK are projected to rise significantly (30-40%), with plastics also targeted for substantial growth. The tariff reductions make these products more attractive to UK buyers.

Boost for Indian Gems and Jewellery: The FTA is expected to double India's gems and jewellery exports to the UK within 2-3 years. This provides significant access to the UK's $3 billion jewellery market, benefiting a key labour-intensive sector in India.

Advantage for Indian Leather and Footwear: The removal of 16% tariffs on leather and footwear products is aimed at boosting exports past the $900 million mark and increasing India's market share by 5% in 1-2 years. This is particularly beneficial for MSME hubs in cities like Agra, Kanpur, and Chennai.

Public Procurement Access for UK Firms: This provision allows UK firms to bid on Indian federal government procurement tenders worth over Rs 2 billion (approximately £19 million) in non-sensitive sectors. This opens up a significant market for UK businesses, estimated at about £38 billion annually.

Inclusion of Digital Trade: The agreement features dedicated provisions for digital trade, aiming to promote compatibility of digital systems and facilitate paperless trade. This is crucial for modern commerce, making trade processes cheaper, faster, and more efficient.

Support for SMEs: The FTA includes bespoke support mechanisms, such as dedicated contact points, for Small and Medium-sized Enterprises (SMEs) in both countries. This is vital for enabling smaller businesses to leverage the opportunities presented by the agreement and expand their international reach.

Commitments on Environmental Goals: The deal explicitly supports climate and environment goals. It fosters cooperation in areas like clean energy, sustainable transport, recycling, and the circular economy, aligning trade with broader sustainability objectives.

New Areas of Cooperation (Gender Equality, SOEs): The inclusion of commitments on gender equality, development, and State-Owned Enterprises (SOEs) marks a progressive step for India in its trade agreements. This signifies a more holistic approach to trade, incorporating social and governance aspects.

Double Contribution Convention (DCC): This is a standalone treaty that exempts Indian workers and their employers from UK social security payments for up to three years. It offers substantial cost savings for Indian professionals temporarily working in the UK, enhancing their attractiveness for UK employers.

Specific benefits to Indian Industries  :

The India-UK Free Trade Agreement (FTA) is poised to be a game-changer for a wide array of Indian industries, offering preferential market access and enhanced competitiveness in the UK. Here's are the benefits to specific Indian industries and their potential quantum of growth:

Textiles and Apparel:

Benefit: This is one of the biggest winners. India's textile and apparel exports will gain duty-free access across 1,143 product categories to the UK market. This is crucial because Indian exporters previously faced duties ranging from 4% to 12%, putting them at a disadvantage compared to competitors like Bangladesh, Pakistan, and Cambodia, which already enjoy duty-free access to the UK.

Experts predict that Indian textile and garment exports to the UK could double over the next five to six years, driven by an anticipated 11% Compound Annual Growth Rate (CAGR). India is expected to capture at least 5% additional market share in the UK within one to two years. Given the UK's total textile imports of nearly $27 billion, and India's current exports of only $1.79 billion to the UK, there's significant headroom for expansion.

Marine Products:

Benefit: The FTA eliminates all tariffs on Indian marine products, which previously attracted duties of up to 20%. This zero-duty access immediately makes Indian seafood more price-competitive.

The UK's marine imports are worth approximately $5.4 billion annually, of which India currently has a relatively small share (around 2.25%). The removal of duties on items like shrimp, tuna, fishmeal, and feeds is expected to significantly accelerate India's seafood export growth, with substantial opportunities for coastal states like Andhra Pradesh, Odisha, Kerala, and Tamil Nadu.

Agriculture and Processed Foods:

Benefit: Over 95% of India's agricultural and processed food items will gain duty-free access to the UK. This includes a vast range of products, from traditional spices to ready-to-eat meals. The agreement also establishes a framework for increasing India's premium branded exports in sectors such as coffee, tea, and spices.

Agricultural exports from India to the UK are projected to rise by more than 20% in the coming three years, contributing significantly to India's ambitious goal of $100 billion in agricultural exports by 2030. Specific products like turmeric, pepper, cardamom, mango pulp, pickles, fruits, vegetables, and cereals will see improved margins and wider international reach. New categories like jackfruit, millets, and organic herbs are also expected to benefit.

Engineering Goods:

Benefit: Duty-free access will be provided for a large number of engineering goods, which constitute a significant portion of India's overall exports. This includes products like electrical machinery, industrial and construction equipment, automobile components, and iron and steel products.

India's engineering exports to the UK are currently around $4.28 billion (FY24). With the FTA in place, these exports are expected to double to $7.5 billion by 2030. The elimination of tariffs, some as high as 18%, will be a catalyst for this growth.

Pharmaceuticals and Medical Devices:

Benefit: The UK has committed to zero tariffs on nearly 99% of Indian pharmaceutical exports, including generic medicines and medical devices like surgical instruments and diagnostics. While many Indian pharma exports were already duty-free, the FTA formalizes this status, providing long-term clarity and certainty. The deal also aims to facilitate smoother regulatory pathways and push for cross-border R&D and innovation.

The UK's pharmaceutical market is valued at approximately $45 billion, with the generics segment alone at $5 billion. India's pharmaceutical exports to the UK crossed $910 million in FY24. The FTA is expected to significantly boost the competitiveness of Indian generics and high-quality affordable healthcare solutions, allowing India to scale its footprint in one of Europe's most valuable healthcare markets.

Chemicals and Plastics:

Benefit: Indian chemical exports to the UK will see substantial tariff reductions, enhancing their competitiveness. The deal opens up significant potential for growth in basic chemicals, organic chemicals, and various plastic products.

The FTA is anticipated to trigger a dramatic 30-40% increase in India's chemical exports to the UK, propelling figures to an estimated $650-$750 million in FY26. Plastics are also targeted for considerable export growth.

Gems and Jewellery:

Benefit: The FTA significantly reduces import duties on Indian gems and jewellery, which previously ranged from 2.5% to 4%. This provides a crucial competitive edge against locally made jewellery in the UK and products from other nations like Malaysia.

Indian government estimates project that gems and jewellery exports to the UK will double in 2-3 years, from the current $941 million (of which $400 million is jewellery alone). The Gem & Jewellery Export Promotion Council (GJEPC) anticipates overall bilateral trade in the sector (including bullion) could double to $7 billion in two years, with Indian gem and jewellery exports climbing to $2.5 billion. This will boost employment for artisans and goldsmiths across jewellery clusters in India.

Leather and Footwear:

Benefit: The removal of tariffs, previously up to 16%, on leather and footwear products is a significant advantage. This provides Indian leather goods and footwear manufacturers a strong competitive edge in the UK market.

India's leather and footwear exports to the UK could exceed $900 million, representing a major leap forward for the sector. The industry is projected to gain an additional market share of 5% in the UK within the next two years, benefiting MSME hubs in cities like Agra, Kanpur, and Chennai.

IT and IT-enabled Services (ITES):

Benefit: While the IT sector is largely services-driven and less impacted by goods tariffs, the FTA includes significant commitments on services, easing mobility for Indian professionals and providing a three-year exemption from UK social security contributions for temporary Indian workers. This reduces costs for Indian IT firms and professionals. The inclusion of digital trade provisions also fosters cross-border tech collaboration.

Indian software services exports are estimated to increase around 20% annually once the trade pact is in effect. The relaxed mobility norms could benefit over 60,000 IT professionals per year.

Labour-Intensive Sectors (e.g., Toys, Sports Goods, Furniture):

Benefit: These sectors will also enjoy zero duties, boosting their competitiveness. The FTA is expected to open up fresh export avenues and create significant job opportunities in these industries.

While specific quantum figures for all these sectors are still being assessed, the general principle of duty-free access will make Indian products more attractive and increase their market share in the UK. This directly translates to increased production and job creation in India.

Benefits to UK Industries :

The India-UK Free Trade Agreement (FTA) represents a significant opportunity for various UK industries to access India's large and rapidly growing market of 1.4 billion people. India's commitment to reduce its average tariffs on UK products from 15% to 3% is a major win for British businesses.

Here's list of benefits to key UK industries:

Spirits (Whisky and Gin):

Benefit: This is arguably one of the most celebrated wins for the UK. India has agreed to slash import duties on Scotch whisky and gin from 150% to 75% immediately, with a further reduction to 40% over the next ten years. This makes British spirits significantly more affordable and competitive in India, the world's largest whisky market by volume.

While the full impact on retail prices might be gradual due to state-level taxes in India, this tariff reduction provides a substantial competitive advantage to UK distillers like Diageo and Chivas Brothers. It's expected to drive long-term investment and job creation in Scottish distilleries and bottling plants, significantly increasing export volumes to India. For example, a bottle of Scotch whisky could see a reduction of ₹100-₹300 in consumer prices, making it more accessible to a wider Indian consumer base and potentially shifting consumers towards premium international brands.

Automotive Sector:

Benefit: India has committed to reducing tariffs on UK-built vehicles from over 100% to 10% under a quota-based system. This is a landmark concession, as India has historically maintained very high tariffs on imported cars to protect its domestic industry. This directly benefits luxury and premium car manufacturers in the UK.

The immediate beneficiaries are high-end brands like Jaguar Land Rover, Rolls-Royce, Bentley, and Aston Martin. While the quota ensures protection for India's mass-market segment, it opens a preferential entry path for a fixed number of British luxury cars. For instance, the price of a Bentley Bentayga could fall by nearly 40%. For petrol and diesel cars over 3000 cc, the duty reduction to 10% will apply to a quota starting at 10,000 units and rising to 19,000 in year five. For mid-sized cars, a 50% in-quota duty applies, falling to 10% by year five. This allows UK automotive companies to better tap into India's growing market for premium vehicles.

Financial and Professional Services:

Benefit: The FTA includes a dedicated chapter on financial services, ensuring that UK financial services companies receive treatment on par with domestic suppliers in India. This means non-discriminatory rules and comprehensive transparency commitments for UK firms operating in India, fostering a more predictable and equitable environment. It also facilitates greater collaboration in areas like FinTech, electronic payments, and financial diversity.

London is a global financial hub, and this agreement is expected to unlock significant opportunities for UK banks, insurance companies, asset managers, and other financial institutions to expand their operations and offer innovative services in India. This increased market access will support both inbound and outbound investments, and the surging trade between the two nations will generate significant demand for trade finance and foreign exchange services. The deal is seen as a precursor to longer-term financial market integration between London and India's IFSC GIFT City/Mumbai.

Public Procurement:

Benefit: A major breakthrough for the UK is access to India's federal government procurement tenders. UK firms can now bid on Indian federal government contracts worth over ₹2 billion (approximately £19 million) in non-sensitive sectors. This is a significant opening in a historically protected market.

India's federal government procurement market is estimated at about £38 billion annually. This access provides UK companies, particularly those in IT services, construction services, and financial/insurance services, with a vast new pool of potential contracts. While certain sensitive sectors and sub-central (state/local) government entities are excluded, the agreement guarantees non-discriminatory treatment for UK suppliers, encouraging a level playing field.

Other Services (across various sectors):

Benefit: The FTA guarantees access for the UK's world-class services industry across a wide range of sectors including environmental services, construction services, and business support services. It also secures commitments on digital trade, promoting compatibility and paperless processes, making trade faster and cheaper.

The UK government projects that the strongest gains from the FTA are concentrated in the 'other services' sector, which includes transport, water, and housing services, where Gross Value Added (GVA) could grow by £551 million (0.2%) relative to a baseline of no FTA. This broadens the scope for UK service providers to offer their expertise and solutions in India's growing economy.

Aerospace Components and Electrical Machinery:

Benefit: India will reduce tariffs on imports of aerospace components and electrical machinery from the UK. This makes these critical inputs cheaper for Indian manufacturers, while simultaneously boosting UK exports.

For aerospace-related items, tariffs are expected to drop from existing levels (e.g., 11%) to nil, making UK components more competitive. Electrical machinery could see tariff reductions to either 0% or 11%. This benefits major UK companies like Rolls-Royce (which supplies engines for aircraft) and other manufacturers of advanced components.

Food and Drink (beyond spirits):

Benefit: While spirits are a headline, other UK food and drink products like chocolates, biscuits, lamb, and salmon are also expected to see reduced import duties in India. This makes them more affordable for Indian consumers.

The average tariff on UK imports will drop significantly, making premium UK food and drink brands more accessible and increasing their market penetration in India's diverse and growing consumer base.

Advanced Manufacturing and Machinery:

Benefit: Reductions in tariffs on UK-manufactured machinery and equipment will make British capital goods more competitive in India. This could include specialized industrial machinery, agricultural equipment, and high-tech components.

The manufacturing of machinery and equipment sector in the UK is estimated to see its GVA grow by £527 million (1.65%) relative to a baseline without the FTA, reflecting increased export opportunities.

Overall Impact for UK Industries:

The FTA aims to boost UK exports to India by nearly 60% in the long run, equivalent to an additional £15.7 billion of UK exports to India by 2040. This is achieved by:

Lowering Trade Barriers: Reducing tariffs and non-tariff barriers directly translates to lower costs for UK exporters, making their products and services more attractive in the Indian market.

Increased Certainty and Transparency: The agreement creates a more predictable and transparent trading environment, reducing risks and encouraging UK businesses to invest and expand their operations in India.

New Market Access: Opening up public procurement and committing to broad services liberalization creates entirely new avenues for UK firms that were previously restricted.

Job Creation and Wage Growth: The deal is expected to create thousands of new jobs across the UK, with an estimated collective uplift in wages of £2.2 billion each year for British workers, as companies expand to meet increased demand from India.

Attracting Indian Investment: The FTA also encourages Indian companies to invest in the UK, with nearly £6 billion in new investment and export wins already announced, creating over 2,200 British jobs.

While some UK sectors (e.g., certain textile segments) might face increased competition from Indian imports, the overall assessment by the UK government is that the FTA will deliver a net positive impact, reallocating resources to higher-growth, export-oriented sectors.

Economic Benefits :

The India-UK Free Trade Agreement (FTA) is designed to be a significant catalyst for economic growth in both nations, generating benefits across various dimensions. The  key economic advantages are :

Enhanced Bilateral Trade and Investment:

The most direct economic impact is the anticipated surge in bilateral trade and investment. By significantly reducing or eliminating tariffs on a vast array of goods and services, the FTA makes products cheaper and more competitive, encouraging greater cross-border commerce. It also aims to streamline regulatory processes, making it easier for businesses to operate in both markets.

The agreement targets a doubling of bilateral trade to $120 billion by 2030 from the current approximately $56 billion. The UK government estimates the deal will add £4.8 billion annually to its GDP, while India's GDP is projected to increase by £5.1 billion annually in the long run. The UK also expects its exports to India to increase by nearly 60% in the long term.

Increased GDP Growth:

The increased trade and investment flows directly contribute to the Gross Domestic Product (GDP) of both countries. Lower tariffs mean more efficient allocation of resources, greater specialization, and increased overall economic activity.

The UK's GDP is estimated to increase by 0.13% per year, equivalent to £4.8 billion. India's GDP is estimated to increase by 0.06% per year, equivalent to £5.1 billion. While these percentages may seem modest in the context of large economies, they represent a permanent uplift in economic output.

Job Creation and Wage Growth:

A robust increase in trade inevitably leads to job creation. As industries expand due to increased export opportunities and inward investment, more employment opportunities arise. Moreover, increased economic activity can lead to higher wages.

The UK government anticipates the creation of thousands of new jobs across the UK, driven by new Indian investments and export wins worth nearly £6 billion. This includes over 2,200 new British jobs directly linked to these new deals. British workers are also projected to collectively experience an annual uplift in wages of £2.2 billion. For India, the boost to labour-intensive sectors like textiles, leather, and marine products will generate significant employment, particularly in manufacturing and agriculture, supporting a potential for 5 million+ job creation in the long term.

Lower Costs for Consumers:

For consumers in both countries, the FTA translates into more affordable goods. Reduced import duties mean that products from the partner country can be sold at lower prices, increasing consumer purchasing power and offering greater choice.

Indian consumers can expect to see cheaper prices on British cars, whisky, cosmetics, medical devices, chocolates, and biscuits. For example, whisky prices could see a reduction of ₹100-₹300 per bottle. UK consumers, in turn, will benefit from cheaper Indian clothes, shoes, and food products as 99% of Indian exports gain duty-free access.

Enhanced Competitiveness for Businesses:

By removing tariffs, businesses become more competitive in the partner market. Indian exporters will face zero or reduced duties in the UK, allowing them to better compete with local producers and other international suppliers. Similarly, UK businesses will gain a significant competitive edge in the Indian market, especially for high-value goods like luxury cars and spirits.

Diversification of Trade and Supply Chains:

The agreement encourages both nations to diversify their trade relationships, reducing over-reliance on any single market. This enhances economic resilience by making supply chains more robust and less susceptible to geopolitical or economic shocks in other regions.

The focus on new sectors and enhanced market access in areas like digital trade and services provides avenues for diversification that go beyond traditional goods trade.

Increased Investment and Capital Flows:

A stable and predictable trade environment, coupled with tariff reductions, makes both countries more attractive destinations for foreign direct investment (FDI). Businesses will be more willing to invest in production facilities, distribution networks, and R&D in the partner country.

Already, nearly £6 billion in new investment and export wins for the UK have been announced concurrently with the FTA signing, demonstrating the immediate impact on investment flows. Indian companies are actively expanding their presence in the UK, and vice-versa, stimulating capital flows and economic activity.

Services Sector Boost:

The FTA goes beyond goods to include significant commitments on services. This is particularly beneficial for both the UK (a services-dominated economy) and India (with its strong IT and professional services sector). Provisions for easier movement of professionals, mutual recognition of qualifications (where applicable), and digital trade facilitate growth in high-value service industries.

The Double Contribution Convention (DCC) is expected to save Indian workers and their employers around ₹4,000 crore (approx. £400 million) annually by exempting them from duplicate social security payments in the UK. This directly benefits Indian IT and other service-sector firms. UK financial and professional services firms gain greater market access and a level playing field in India.

In conclusion, the India-UK FTA is designed to unlock significant economic potential through a comprehensive approach that targets tariff reduction, promotes services trade, eases professional mobility, and fosters a more investment-friendly environment. These measures are expected to translate into higher GDP, increased employment, lower consumer prices, and greater competitiveness for industries in both India and the UK.

The Indian Insolvency and Bankruptcy Code – The way Forward

 

The Indian Insolvency and Bankruptcy Code – The way Forward

Introduction:

The Insolvency and Bankruptcy Code (IBC) of India, enacted in 2016, marked a watershed moment in the nation's economic reforms. Replacing a convoluted and ineffective maze of archaic laws, the IBC introduced a unified, time-bound, and creditor-driven framework for resolving corporate insolvency. Its primary objectives: maximizing the value of distressed assets, promoting entrepreneurship, ensuring availability of credit, and balancing the interests of all stakeholders. While the IBC has undeniably transformed India’s distressed asset landscape, its journey has been one of continuous learning and adaptation, marked by both formidable challenges and significant evolutionary modifications. This article delves into the complexities of its implementation, highlights key statutory and regulatory reforms, and proposes a roadmap for its continued strengthening, substantiated by recent statistics.

Major Issues faced in the implementation of the Insolvency and Bankruptcy Code (IBC) in India. These challenges are often interconnected and contribute to the overall effectiveness and efficiency of the resolution process

Issues in IBC Implementation

Delays and Procedural Issues:

Prolonged Resolution Time:

The IBC was envisioned as a time-bound process, with an initial target of 180 days, extendable to 330 days. However, the average time taken for CIRP to culminate in a resolution plan or liquidation consistently exceeds this. This delay erodes the value of the corporate debtor's assets, increases the resolution costs (including fees for the Resolution Professional and legal expenses), and ultimately leads to lower recoveries for creditors. The longer a company remains in limbo, the more its operational viability deteriorates.

Reason: This is a cascading effect of several factors, including judicial backlogs, frequent litigation, and inadequate infrastructure.

Judicial Backlogs and Shortage of Benches/Judges:

The National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) are the primary adjudicating authorities for IBC cases. They face a severe shortage of judicial and technical members relative to the massive influx of cases. This leads to delays at every stage: admission of applications, hearing of interim applications, approval of resolution plans, and disposal of appeals. The limited number of benches means fewer cases can be heard simultaneously, creating bottlenecks.

Impact: This directly contradicts the time-bound objective of the IBC and contributes significantly to value erosion.

Adjudication Process Inefficiencies:

Beyond the sheer volume of cases, the way NCLT and NCLAT proceedings are conducted can also be inefficient. This includes frequent adjournments, a lack of specialized knowledge among some members for complex financial or sector-specific cases, and procedural ambiguities that lead to prolonged arguments. Sometimes, even basic procedural requirements can cause significant delays.

Example: Debates over the 'admitted debt' or technical defects in applications can drag on, consuming valuable judicial time.

Delays in Admission of Cases:

While the IBC mandates a 14-day period for the NCLT to admit or reject an application for CIRP, in practice, this timeline is rarely met. Corporate debtors often raise various objections, sometimes frivolous, to delay the admission of the insolvency petition. This pre-admission litigation can last for several months, or even over a year, during which the corporate debtor's financial health may further deteriorate, leaving fewer viable assets for resolution.

Impact: This initial delay impacts the "going concern" principle, as the company continues to spiral downwards before formal intervention.

Multiplicity of Proceedings:

Despite the IBC being a comprehensive code, its interplay with other existing laws (e.g., Prevention of Money Laundering Act - PMLA, Securities and Exchange Board of India - SEBI regulations, Real Estate (Regulation and Development) Act - RERA, tax laws) often leads to parallel investigations or proceedings. This creates jurisdictional conflicts, diverts the attention and resources of the Resolution Professional, and can stall the CIRP or liquidation process, as assets may be provisionally attached by other agencies.

Example: ED attaching assets under PMLA can hinder asset monetization under IBC.

Value Realization and Creditor Concerns:

Low Recovery Rates/High Haircuts:

While the IBC has improved recovery rates compared to previous regimes, the "haircuts" (the difference between the admitted claim and the amount realized by creditors) remain substantial. Creditors, particularly financial creditors, often recover only a fraction of their outstanding dues. While some haircuts are inevitable in distressed situations, consistently deep haircuts raise questions about the code's ability to maximize value for all stakeholders.

Context: This is partly due to many cases being "legacy NPAs" that are already in an advanced state of distress when admitted to IBC, leaving little value to recover.

Ineffective Liquidation Process:

When a resolution plan fails or is not approved, the corporate debtor goes into liquidation. The liquidation process itself is often plagued by delays, challenges in asset identification and valuation, difficulties in finding buyers for distressed assets, and legal complexities. This leads to further value erosion and poor realization for creditors, making liquidation an unattractive outcome.

Reason: The absence of a robust distressed asset market and the stigma associated with buying assets from liquidation also contribute.

Identification and Realization of Avoidance Transactions:

The IBC provides for the clawback of preferential, undervalued, fraudulent, or extortionate credit transactions that occurred before the insolvency commencement date. However, identifying these transactions, gathering sufficient evidence, and successfully litigating them before the NCLT/NCLAT is a complex, time-consuming, and resource-intensive process. Promoters often conceal such transactions, making it difficult for the Resolution Professional to recover these assets for the creditors.

Impact: Failure to recover these assets directly reduces the pool available for creditor distribution.

Promoters Exploiting "Haircuts" and Loopholes:

Despite the introduction of Section 29A to bar defaulting promoters from reacquiring their companies, concerns persist about promoters attempting "backdoor entries" or using proxies to bid for their distressed assets at significantly reduced valuations after "cleaning" the company's balance sheet through the IBC process. While Section 29A addresses direct reacquisition, complex corporate structures and indirect influence can sometimes still pose challenges.

Perception: This can create a perception of unfairness where the original defaulters benefit from the system.

Creditor Hierarchy and Discrimination:

The IBC establishes a waterfall mechanism for the distribution of liquidation proceeds. While financial creditors generally have higher priority, there have been debates and concerns regarding the equitable treatment of various classes of creditors, particularly operational creditors and homebuyers (who were later recognized as financial creditors). Issues arise concerning the proportionality of recovery and potential for discrimination in resolution plans.

Example: Disputes over treatment of secured vs. unsecured financial creditors or the practical challenges faced by a large number of scattered operational creditors.

Stakeholder Behaviour and Capacity:

Behavioural Issues and Lack of Cooperation:

The success of IBC depends heavily on the cooperative behaviour of all stakeholders – debtors, creditors, Resolution Professionals, and even government agencies. However, often there's a lack of genuine cooperation. Debtors may resort to delaying tactics, frivolous litigation, or non-disclosure of information. Creditors, particularly a fragmented Committee of Creditors (CoC), may have divergent interests, leading to disagreements and delays in approving resolution plans.

Impact: This adversarial environment slows down the process and can undermine the objective of revival.

Professional Misconduct and Competence of IPs:

The role of Insolvency Professionals (IPs) is central to the IBC process. However, issues related to their competence, ethical conduct, and independence have emerged. Instances of IPs not adhering to strict timelines, lacking the specialized knowledge for complex cases, or facing conflicts of interest have been reported. There are also concerns about the quality of valuations provided by registered valuers.

Regulatory Challenge: Ensuring consistent high standards across the large and growing pool of IPs is a continuous challenge for the IBBI.

Capacity Building for Stakeholders:

Many stakeholders, including smaller creditors, operational creditors, and even some corporate debtors, may not fully understand the intricacies of the IBC. This lack of awareness can lead to delays, incorrect filings, or inability to effectively participate in the process, thereby undermining their rights and the efficiency of the resolution.

Need: There's a need for continuous education and awareness programs.

Information Asymmetry:

Accurate and comprehensive information about the corporate debtor's assets, liabilities, and business operations is crucial for informed decision-making by the Committee of Creditors and potential resolution applicants. However, obtaining this information can be challenging due to poor record-keeping by distressed companies, non-cooperation from erstwhile management, or issues with data accuracy from Information Utilities. This asymmetry hinders effective due diligence and robust bidding.

Specific Sectoral Challenges:

Complex Group Structures and Cross-Border Insolvency:

Many large Indian conglomerates operate through complex, multi-layered group structures, often with inter-company transactions and cross-guarantees. The IBC, in its initial form, was primarily designed for individual corporate debtors. Dealing with insolvency of a group where entities are interdependent and have assets/liabilities across different jurisdictions (cross-border insolvency) is highly complex, requiring a sophisticated legal framework that India is still developing.

Legal Gap: The absence of a specific group insolvency framework and a robust cross-border insolvency law leads to ad-hoc judicial interventions, which can be inconsistent.

Real Estate Sector Specific Issues:

The real estate sector presents unique challenges due to the large number of dispersed creditors (homebuyers), long project cycles, reliance on multiple regulatory approvals (RERA, local authorities), and often incomplete projects. Resolving real estate insolvencies involves complex issues of project completion, transfer of development rights, and managing the interests of thousands of homebuyers, making it particularly challenging for IPs and NCLTs.

Impact: This often leads to highly protracted and contentious CIRPs.

MSME Challenges:

While the Pre-Packaged Insolvency Resolution Process (PPIRP) was introduced for MSMEs to provide a quicker and less formal resolution, its adoption and effective implementation have faced hurdles. Many MSMEs lack the financial sophistication or resources to initiate and navigate even a pre-pack process, and concerns about potential abuse by promoters also exist.

Regulatory and Policy Gaps:

Evolving Jurisprudence and Inconsistency:

The IBC is a relatively new law, and its provisions are continuously being interpreted and refined by the NCLT, NCLAT, and the Supreme Court. While judicial interpretations are essential for clarity, frequent and sometimes conflicting pronouncements can lead to legal uncertainty, making it difficult for stakeholders to predict outcomes and plan strategies.

Impact: This can deter potential resolution applicants due to perceived legal risks.

Lack of Defined Thresholds for Haircuts:

There is no specific legal or regulatory guidance on what constitutes an "acceptable" haircut for creditors. This often leads to intense negotiations, disagreements within the CoC, and sometimes, challenges to approved plans based on the perceived inadequacy of the offered recovery, further delaying the process.

Debate: The balance between maximizing value and achieving quick resolution often leads to debates over the size of haircuts.

Challenges in Post-Resolution Monitoring:

Once a resolution plan is approved and implemented, there are limited formal mechanisms for monitoring the compliance of the new management with the terms of the plan, or the long-term viability of the resolved company. While the CoC is dissolved, the onus largely shifts to the creditors to enforce the plan's terms, which can be challenging, especially for larger consortiums or in cases of non-compliance after a period.

Risk: This lack of robust monitoring can lead to a return to distress if the plan is not properly executed.

These issues collectively highlight the need for continuous legislative, regulatory, and judicial reforms to ensure the IBC realizes its full potential as a transformative insolvency regime in India.

Modifications Done in the Recent Past to Make it a Robust System

The IBC has been subject to continuous amendments to address practical challenges and judicial pronouncements. These changes, both statutory amendments and regulatory tweaks, aim to enhance efficiency, transparency, and fairness.

Recognition of Homebuyers as Financial Creditors (IBC (Amendment) Act, 2018):

Initially, homebuyers were treated as operational creditors, often having limited say in the resolution process and receiving meagre recoveries. This amendment explicitly brought them under the ambit of 'financial creditors' with a deemed financial debt.

Impact: This was a monumental shift, giving homebuyers representation in the Committee of Creditors (CoC) through an authorized representative (AR) and a significant vote share, thereby empowering them to protect their interests in real estate insolvency cases. It addressed a major social and economic concern.

Introduction of Section 29A (Eligibility Criteria for Resolution Applicants - IBC (Amendment) Act, 2018):

This was a critical anti-cronyism measure. It disqualified certain categories of persons, including defaulting promoters and those connected to them, from submitting a resolution plan for the corporate debtor. The intent was to prevent "backdoor entry" by individuals who contributed to the company's financial distress.

Impact: This significantly enhanced the integrity of the resolution process and fostered a more credible market for distressed assets. It sent a strong signal that defaulting promoters would not be allowed to regain control at a steep discount without first clearing their past dues.

Introduction of Pre-Packaged Insolvency Resolution Process (PPIRP) for MSMEs (IBC (Amendment) Ordinance, 2021, later replaced by Act):

Recognizing the unique challenges faced by MSMEs (Micro, Small and Medium Enterprises), PPIRP was introduced as a faster and more cost-effective out-of-court resolution mechanism. It allows the existing management to remain in control (debtor-in-possession model) and present a base resolution plan, subject to creditor approval and NCLT oversight.

Impact: Aims to reduce the burden on NCLTs for smaller cases, preserve MSME businesses, and minimize disruption to their operations, thereby facilitating quicker resolutions and safeguarding jobs.

Mandatory Timeline for CIRP Completion (Initially 270 days, extended to 330 days - IBC (Amendment) Act, 2019):

To emphasize the time-bound nature of the process, the maximum period for completion of CIRP (including extensions and litigation period) was capped at 330 days. While this timeline is still often breached in practice due to various factors, its statutory backing provides a strong imperative for all stakeholders and adjudicating authorities to expedite matters.

Impact: It serves as a benchmark and a constant reminder to prevent undue delays, ensuring that the distressed asset does not suffer further value erosion.

Strengthening Information Utilities (IUs) (Ongoing Regulatory Amendments, e.g., IBBI (Information Utilities) Regulations):

IUs are central repositories of financial and operational debt information. Recent modifications have aimed to strengthen their role by making data submission by creditors more robust and verifiable. The objective is to reduce disputes over the existence and amount of default, thereby speeding up the admission of CIRP applications.

Impact: Improved data quality from IUs leads to quicker verification of claims, enhancing transparency and reducing initial litigation, which can significantly cut down the time for CIRP admission.

Amendments to IBBI (Insolvency Professionals) Regulations (Various amendments, including in 2024 and 2025):

These regulations govern the conduct, duties, and responsibilities of Insolvency Professionals (IPs). Recent amendments have focused on enhancing their accountability, ethical standards, and efficiency. This includes provisions allowing IPs to resign under certain conditions, clarifying the ability of Insolvency Professional Entities (IPEs) to utilize internal resources, and strengthening the Authorization for Assignment (AFA) framework.

Impact: Aims to improve the quality of insolvency professionals, ensuring they are competent, independent, and adhere to high ethical standards, which is crucial for the effective functioning of the IBC.

Relaxations and Specific Provisions for Real Estate Allottees (IBBI (CIRP) (Amendment) Regulations, 2025 (e.g., February 2025):

Building on the recognition of homebuyers as financial creditors, these regulations introduced specific provisions to address the unique challenges of real estate projects. Key changes include:

Handing Over Possession: The Resolution Professional, with CoC approval, can now hand over possession of plots/apartments to homebuyers even while the CIRP is ongoing, provided the allottee has fulfilled their obligations. This provides much-needed relief to homebuyers.

Appointment of Facilitators: Allows for the appointment of facilitators for sub-classes within large creditor classes like homebuyers, to improve communication and participation.

Participation of Competent Authorities: CoC can invite relevant land authorities (e.g., NOIDA, HUDA) to meetings for inputs on regulatory and development matters, which is crucial for real estate projects.

Reports on Development Rights: RPs are mandated to prepare detailed reports on development rights and approvals for real estate projects within 60 days, providing clarity on viability.

Relaxations for Homebuyer Associations: Empowered CoCs to relax conditions for associations of homebuyers to participate as resolution applicants.

Impact: These changes are designed to make real estate CIRPs more homebuyer-centric, efficient, and increase the likelihood of project completion and value preservation.

Enhanced Disclosure Requirements, especially for Avoidance Transactions (IBBI (CIRP) (Amendment) Regulations, 2025):

Recent amendments, particularly in the May 2025 regulations, mandate RPs to include comprehensive details of identified avoidance transactions (preferential, undervalued, fraudulent) in the Information Memorandum provided to potential resolution applicants.

Impact: This ensures greater transparency for prospective bidders, allowing them to make informed decisions about the corporate debtor's true financial position and potential liabilities/recoveries from such transactions. It also encourages more proactive identification and pursuit of these transactions.

Facilitating Part-Wise Resolution and Sale of Assets (IBBI (CIRP) (Fourth Amendment) Regulations, 2025 - May 2025):

This significant amendment allows Resolution Professionals, with CoC approval, to invite resolution plans not just for the corporate debtor as a whole, but also for specific business segments or for the sale of one or more of its assets. This creates a "dual-track" mechanism.

Impact: This provides greater flexibility, especially for large, diversified corporate debtors, allowing viable parts of the business to be resolved faster or sold off, preventing value erosion in healthy segments, and attracting a broader range of investors who might be interested only in specific assets or business units.

Harmonizing Payments for Dissenting Financial Creditors & Mandatory Presentation of All Plans (IBBI (CIRP) (Fourth Amendment) Regulations, 2025 - May 2025):

Dissenting Creditors: Where a resolution plan provides for staged payments, financial creditors who did not vote in Favor of the resolution plan must now be paid at least pro-rata and in priority over those who voted in Favor, at each stage. This ensures fairness and protects the rights of minority dissenting creditors.

All Plans to CoC: RPs are now mandated to present all resolution plans received to the CoC, including those that are non-compliant, along with details of non-compliance. Previously, RPs would often filter out non-compliant plans.

Impact: The dissenting creditor provision strengthens procedural justice and encourages more critical scrutiny within the CoC. The mandatory presentation of all plans increases transparency and empowers the CoC with complete information for their decision-making, reducing RP discretion and fostering a more competitive bidding environment.

These continuous modifications underscore the Indian government and the IBBI's commitment to making the IBC a more effective, efficient, and fair mechanism for resolving insolvency, adapting to the dynamic economic and legal landscape.

Further Action Plans to Make the Implementation More Effective

Enhancing Adjudication and Infrastructure:

Increase NCLT/NCLAT Bench Strength:

The single most critical bottleneck in IBC implementation is the overburdened National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT). A significant and sustained increase in the number of benches, judicial members, and technical members is paramount. This isn't just about filling existing vacancies but actively expanding the capacity to meet the growing caseload.

Action: This requires a dedicated recruitment drive, streamlined appointment processes, and adequate budgetary allocation. The government must treat NCLT/NCLAT expansion as a high priority infrastructure project.

Establish Dedicated IBC Benches:

Within the expanded NCLT/NCLAT, creating specialized benches solely dedicated to IBC matters, or even sub-specialized benches for complex areas like real estate, group insolvencies, or cross-border cases, can significantly improve efficiency. Judges and technical members on these benches would develop deeper expertise, leading to faster and more consistent decisions.

Action: This involves specific judicial training and allocation of personnel based on their aptitude and experience in commercial and insolvency law.

Digitization and Automation of Processes:

While some digitization has occurred, an end-to-end digital platform for all IBC proceedings is essential. This includes e-filing of applications, claims, and reports; online tracking of case progress; virtual hearings as a default; and AI-assisted tools for document review and basic compliance checks. Automation can reduce manual errors and processing times.

Action: This requires significant investment in IT infrastructure, robust cybersecurity measures, and training for all stakeholders (judges, lawyers, IPs, creditors) to fully utilize the digital system.

Strengthen IT Infrastructure for NCLT/NCLAT:

Beyond just digitizing processes, the physical and digital infrastructure of the NCLT/NCLAT must be robust. This includes high-speed internet, reliable video conferencing facilities in every courtroom, secure data storage, and adequate technical support staff. A poor digital backbone can negate the benefits of digitization.

Action: Regular audits of IT systems, procurement of modern equipment, and a dedicated IT support team for each bench.

Performance Metrics and Accountability for Adjudicating Authorities:

Implement clear, publicly available performance metrics for NCLT and NCLAT benches, focusing on case disposal rates, adherence to timelines, and consistency of judgments. While judicial independence is paramount, systematic data analysis can highlight areas of inefficiency. Introduce internal accountability mechanisms for delays not attributable to external factors.

Action: Regular data collection and publication by the Ministry of Corporate Affairs (MCA) and IBBI, with annual performance reviews and targeted interventions for underperforming benches.

Improving Resolution Process and Value Maximization:

Streamline Resolution Plan Approval:

The NCLT's role in approving resolution plans should primarily focus on ensuring compliance with the IBC's provisions and not delve into the commercial wisdom of the CoC. Develop clearer guidelines and precedents to limit the scope of judicial review during plan approval, preventing unnecessary litigation and delays.

Action: This requires strong judicial pronouncements from the Supreme Court reinforcing the "commercial wisdom" principle and NCLT/NCLAT training to adhere to this narrower scope of review.

Explore Out-of-Court Resolution Mechanisms:

While PPIRP is a step in this direction for MSMEs, explore and formalize other pre-insolvency or out-of-court restructuring and mediation frameworks for various corporate debtors. This could include a robust framework for voluntary liquidation or debt restructuring outside formal CIRP, reducing the burden on the NCLTs for cases that can be resolved amicably.

Action: Legislative amendments or separate regulations to recognize and enforce such agreements, providing legal certainty and encouraging early resolution.

Strengthen Enforcement of Resolution Plans:

Ensure that once a resolution plan is approved by the NCLT, its implementation is swift and strict. Introduce stronger provisions for penalizing non-compliance by the successful resolution applicant. This includes potential forfeitures of performance security and faster legal recourse for breaches.

Action: Amending the IBC to include specific enforcement mechanisms and dedicated NCLT benches for monitoring and ensuring compliance with approved plans.

Develop Sector-Specific Guidelines:

For complex sectors like real estate, infrastructure, financial services (e.g., NBFCs), and even startups, develop specific regulations or guidelines within the IBC framework. These guidelines would address unique challenges, such as handling a large number of homebuyers, regulatory approvals for infrastructure projects, or the going concern value of technology companies.

Action: IBBI, in consultation with sectoral regulators (e.g., RBI, SEBI, RERA), can issue detailed regulations or guidance notes.

Refine Valuation Standards and Practices:

Improve the quality, consistency, and reliability of valuations under the IBC. This involves developing more standardized valuation methodologies for distressed assets, enhancing the regulatory oversight of Registered Valuers (RVs), and providing continuous training to ensure high ethical standards and technical competence.

Action: IBBI can revise RV regulations, introduce mandatory continuous professional development, and impose stricter penalties for fraudulent or negligent valuations.

Facilitate Cross-Border Insolvency Framework:

Expedite the adoption and implementation of a comprehensive cross-border insolvency framework, ideally based on the UNCITRAL Model Law on Cross-Border Insolvency. This is crucial for Indian companies with assets or creditors abroad, ensuring cooperation with foreign jurisdictions and efficient resolution of multi-jurisdictional insolvencies.

Action: Parliament needs to pass the enabling legislation, and India needs to sign bilateral treaties or conventions with other countries to facilitate this.

Introduce Group Insolvency Framework:

The government's recent approval of a group insolvency framework is a positive step. This framework needs to be enacted into law and effectively implemented. It could provide mechanisms for coordinated resolution of financially linked companies within a corporate group, avoiding fragmented and inefficient proceedings.

Action: Timely enactment of the proposed Group Insolvency Bill and development of clear regulations by IBBI for its practical application.

Strengthening Stakeholder Capacity and Oversight:

Continuous Capacity Building for IPs and Stakeholders:

Conduct regular, advanced, and specialized training programs for Insolvency Professionals (IPs) covering complex legal, financial, and sector-specific issues. Extend these training initiatives to NCLT/NCLAT members, legal practitioners, and financial/operational creditors to enhance their understanding of the IBC and their respective roles.

Action: IBBI, in collaboration with professional institutes (e.g., ICAI, ICSI, IICA), should design and deliver these training modules.

Enhance Regulatory Oversight of IPs:

Strengthen the IBBI's surveillance and disciplinary mechanisms over IPs. This includes more proactive monitoring of their conduct, stricter enforcement of the Code of Conduct, swift action against professional misconduct, and greater transparency in disciplinary proceedings.

Action: Increased resources for IBBI's surveillance department, leveraging technology for monitoring, and clear guidelines for initiation and completion of disciplinary actions.

Promote Professional Code of Conduct for CoC:

While the CoC has commercial wisdom, a non-binding "Code of Conduct" or best practices guide for CoC members could encourage transparent, fair, and timely decision-making. This would address issues like internal squabbles, unreasonable demands, or lack of engagement, which often delay the process.

Action: IBBI could issue guidelines or advisories promoting responsible conduct and good governance practices within the CoC.

Strengthen Information Utilities:

Further mandate and incentivize the use of Information Utilities (IUs) for all financial and operational creditors. Ensure that data submitted to IUs is comprehensive, accurate, and regularly updated. Leverage technology to seamlessly integrate IU data with NCLT proceedings for automated verification of claims.

Action: Introduce stricter penalties for non-compliance in data submission, further enhance the data security and interoperability of IUs, and make IU records conclusive evidence for default.

Addressing Specific Gaps and Promoting Efficiency:

Clearer Guidelines on Avoidance Transactions:

Provide more precise statutory definitions and judicial precedents regarding preferential, undervalued, and fraudulent transactions. Develop detailed operational guidelines for Resolution Professionals on how to identify, investigate, and pursue avoidance applications more effectively and within stricter timelines.

Action: IBBI can issue detailed guidance notes, and judicial pronouncements from the Supreme Court can provide much-needed clarity.

Address Interplay with Other Laws:

Proactively harmonize the IBC with other potentially conflicting statutes, such as the Prevention of Money Laundering Act (PMLA), SEBI regulations, Income Tax Act, and RERA. This can be achieved through legislative amendments to clarify supremacy or through inter-regulatory coordination mechanisms.

Action: Formation of an inter-ministerial/regulatory committee to identify and resolve overlaps and conflicts, leading to necessary legislative changes.

Establish a Dedicated Fund for CIRP Costs:

In cases where the corporate debtor has minimal assets or funds, IPs often struggle to meet the initial CIRP costs, leading to delays or even abandonment of the process. Establishing a dedicated fund (perhaps from liquidation proceeds of other cases or government allocation) to cover initial CIRP costs in such cases could ensure the process does not halt due to lack of funds.

Action: Government can establish a corpus fund, with clear eligibility criteria and repayment mechanisms once assets are realized.

Post-Resolution Monitoring Mechanism:

Implement a robust mechanism to monitor the implementation of approved resolution plans and the performance of resolved companies for a defined period (e.g., 2-3 years) post-CIRP. This could involve periodic reporting requirements to IBBI or a designated agency, ensuring the successful revival and long-term compliance of the corporate debtor.

Action: IBBI to develop a reporting framework and conduct periodic reviews, possibly engaging independent auditors for this purpose.

These action plans, if implemented comprehensively and with sustained political will, have the potential to significantly enhance the effectiveness, efficiency, and fairness of the IBC regime in India, contributing to a healthier credit environment and improved ease of doing

Statistics at a Glance (as of Q1 FY25):

Total CIRP Cases Admitted: Over 8,002 cases since inception.

Cases Closed: Approximately 75% of admitted cases have been closed (resolution, withdrawal, liquidation).

Resolution vs. Liquidation: In FY24, a record 269 resolution plans were approved. The ratio of resolutions to liquidations improved from 21% (2017-18) to 61% (2023-24), though liquidations still account for 45% of closed CIRPs.

Recovery Rates: Average recovery for financial creditors is 32% of admitted claims. Against liquidation value, realization is higher (169%).

Time Taken: Average CIRP time for resolved cases in FY24 was 843 days, highlighting significant deviations from statutory timelines.

Behavioural Shift: Over 26,518 applications (₹9.33 lakh crore default) were withdrawn prior to admission (till Aug 2023), indicating the IBC's deterrent effect and encouraging pre-emptive settlements.

Conclusion:

The IBC, in its eight years, has significantly recalibrated India's credit ecosystem, fostering a culture of timely debt repayment and improving recovery rates. The constant amendments and regulatory fine-tuning reflect a commitment to continuous improvement. However, persistent challenges, particularly judicial backlogs and the need for deeper sectoral expertise, demand urgent and decisive action. By aggressively expanding judicial capacity, embracing end-to-end digitization, and enacting the proposed frameworks for group and cross-border insolvencies, India can propel the IBC into its next phase of maturity, ensuring it remains a powerful tool for economic stability and growth. The journey of the IBC is a testament to India's dynamic legal and economic reform agenda, steadily progressing towards a more efficient and effective insolvency regime.