However, the survey cautioned that prolonged insolvency timelines erode asset value, disrupt operations and weaken stakeholder confidence. It noted that the Pre-Packaged Insolvency Resolution Process has seen only 14 admissions since its introduction in 2021, reflecting procedural complexity, lack of awareness, trust deficits in debtor-led processes and funding constraints for MSMEs.
Looking ahead, the Economic Survey referred to the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, which proposes measures to address procedural delays and introduce a framework for cross-border insolvency. The survey emphasised that the next phase of the IBC must combine process reform with a rapid expansion of institutional capacity.