The enactment of the Insolvency and Bankruptcy Code itself, even without implementation, will improve India's ranking in the World Bank report
The Indian government has taken great interest in addressing the problems of doing business in the country and improving India’s rank in the World Bank’s “Doing Business" report. One parameter evaluated in this report is “resolving insolvency". India ranks 136 in the world in the ease of “resolving insolvency" and 130 overall. The enactment of the Insolvency and Bankruptcy Code (IBC), 2016 is likely to change this. The formal resolution process laid out in IBC is a significant improvement on current procedures. Passing the law is a big step forward. It will result in the ancillary benefit of improving India’s score in the Doing Business report but in and of itself, it will not create a framework for effective insolvency resolution in India. The key now is implementation and this will require time, planning and building adequate State capacity.
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