India’s insolvency resolution framework continues to face execution-related challenges, with liquidation remaining the dominant closure route and recovery rates showing little improvement despite multiple regulatory reforms, according to a report by India Ratings and Research (Ind-Ra).
The agency said that while recent amendments and refinements to the Insolvency and Bankruptcy Code (IBC) are structurally positive, recovery outcomes continue to be driven largely by execution realities rather than regulatory design. As a result, meaningful improvements in creditor recoveries are likely to take time and will depend on more effective implementation of reforms.
According to Ind-Ra, the fourth quarter of FY26 reflected this trend. Fresh…