Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. The introduction of the Insolvency and Bankruptcy Code (IBC) in 2016 was a ‘watershed’ moment in India. But there are issues which needs to resolved in order to have a smooth and seamless implementation of the code. In the light of the above, suggest course corrections required in the IBC. (250 words)
Difficulty level: Tough
Why the question:
The government will now have to focus on strengthening the IBC infrastructure and help it discharge its functions effectively.
Key Demand of the question:
To write about the various issues in IBC and steps needed to resolve it.
Structure of the answer:
Begin by writing about Insolvency and Bankruptcy Code (IBC) its aims and objectives.
First, list down the various features and achievements of IBC since its introduction.
Next, write about the various limitations in the performance of IBC.
Next, write about the reform that is needed to ensure that IBC performance leads to strengthening of its supporting role in capital formation and economic growth of the country.
Conclude with a way forward.