Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. Analyse the features of IBC Amendment ordinance 2021 in providing relief to MSME sector in India. (250 words)
Reference: Live Mint
Why the question:
The article presents a detailed analysis of IBC and the relief that it provides to MSME sector in India.
Key Demand of the question:
Analyse the features of IBC Amendment ordinance 2021 in providing relief to MSME sector in India. Directive:
Analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.
Structure of the answer:
Seeking to provide a quicker and value-maximizing outcome for stressed MSMEs, the government has introduced a pre-packaged resolution process for such enterprises by amending the insolvency law.
Explain that many MSMEs have been impacted by the coronavirus pandemic and experts opined that the latest amendment, which comes less than two weeks after the suspension of certain IBC provisions ended, is a welcome move.
Analysis the clause in detail, explain its merits and demerits to MSME sector.
Conclude with importance.