The Insolvency and Bankruptcy Code, now in its 10th year, is perhaps India’s most consequential market reform for resolving corporate distress and reallocating resources from failed enterprises to more efficient hands. Since its inception, the code has resolved stress of more than 4,400 companies, rescuing around 1,400 through resolution plans and sending the rest into liquidation.
The proportion of companies rescued has steadily improved: from 16 percent in 2017-18 to 48 percent in 2025-26. This is a significant achievement. It reflects a combination of legislative and regulatory facilitation, a consistent judicial preference for rescue over liquidation and growing institutional familiarity with the insolvency process. The IBC has…