For decades, India's economic growth was choked by a silent, creeping crisis that economists famously dubbed the twin balance sheet problem. Corporate giants routinely borrowed billions from state-owned banks, ran their businesses into the ground and yet somehow managed to keep their lavish lifestyles intact while banks were left holding mountains of toxic loans.
This defaulter's paradise acted as a massive drag on India's global ambitions, locking up vital public capital that could have otherwise funded infrastructure, healthcare and new entrepreneurial ventures. The arrival of the Insolvency and Bankruptcy Code (IBC) in 2016 changed all of that by introducing a structural revolution that re-engineered the DNA of Indian capitalism. As the law hits its 10-year milestone, it has evolved into the ultimate economic cleaner, freeing up trillions of rupees and providing the bedrock of financial stability India needs to fuel its march toward becoming a developed superpower. However, even after a decade, the law remains a work in progress, facing various glitches and needing upgrades.
