Topic – Indian Economy and issues relating to planning, mobilization of resources, growth, development
4) Bhushan steel case marks the beginning of the end of India’s struggle with bankruptcy. Examine.(250 words)
Why this question
Bhushan case is an important milestone in our struggle to deal with bankruptcy and bad loans. The larger issues that it represents, the challenges in india’s banking sector that brought us to this state, how can we resolve this going forward etc are all issues that have to be discussed.
Key demand of the question
The question expects us to probe deeper into the hypothesis that resolution of the Bhushan steel case signals that dealing with bankruptcy is no longer a problem for India. We have managed to understand its causes and through the bankruptcy code have learnt to resolve cases efficiently. Whether or not this is true is to be brought out in the answer
Examine – When you are asked to examine, you have to probe deeper into the topic, get into details, and find out the causes or implications if any .
Structure of the answer
Introduction – mention the details of the case and what it signals – smoothening of the bankruptcy resolution process
- Discuss the reasons behind the spate of bankruptcy cases
- Discuss the bankruptcy code and how it aimed to improve the status quo
- Discuss the performance of the bankruptcy code so far – the hits and the misses
- Discuss the implications that resolution of this case would have on other cases of similar nature.
- Discuss the shortcomings that are still remaining to understand the reforms required
Conclusion – mention the benefits that India would accrue such as EODB, bad debts resolution etc and thus the need to maintain constant vigil.