An improving insolvency framework is important for achieving 7-8 per cent economic growth over the next decade, the Economic Survey said on Friday and pitched for imposition of higher costs to prevent entities from filing frivolous applications during the resolution process. The suggestion also comes against the backdrop of long delays in the insolvency resolution process in various cases.
The Survey, tabled in Parliament, also called for reforms to improve operational efficiencies to speed up the resolution process under the Insolvency and Bankruptcy Code (IBC), which came into force in 2016.
“By addressing financial distress and NPAs…
