Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
4. The implementation of the Insolvency and Bankruptcy Code (IBC), 2016 has faced operational challenges, including delays in the resolution process. Critically analyse. (250 words)
Difficulty level: Moderate
Reference: The Hindu , Insights on India
Why the question:
During the resolution plan approval, only about 15% is paid by the purchaser and the repayment takes years without any further interest collected by the banks, according to the financial stability report released by banking regulator Reserve Bank of India on December 28, 2023.
Key Demand of the question:
To write about the various issues in IBC and steps needed to resolve it.
Directive word:
Critically analyze – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a balanced judgment on the topic.
Structure of the answer:
Introduction:
Begin by writing about Insolvency and Bankruptcy Code (IBC) its aims and objectives.
Body:
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.
Conclusion:
Conclude with a way forward.
