India’s insolvency framework has just earned a rare global “pat on the back”, with S&P Global Ratings upgrading India’s jurisdiction ranking for insolvency from Group C to Group B on the back of the Insolvency and Bankruptcy Code (IBC). Yet, behind this praise sits a more complex story of revolutionary law, uneven implementation, and a constant tug of war between policy ambition and judicial interpretation.
Why has S&P suddenly become more generous to India’s insolvency regime, and what exactly has changed? According to S&P, the key reason is a visible shift in “creditor-friendliness”: recoveries under IBC are now over 30 per cent on average versus roughly 15–20 per cent under the earlier patchwork of debt recovery…