Systemic change: Hits and misses of India's bankruptcy reforms code

IBC has had a carrot-and-stick effect - making companies serious about governance and bringing stuck capital back into the economy. It seems to be a work in progress, but the system is surely working

Steel matters: it's used in a host of products, from automobiles to houses. In 2019, two of India’s biggest steelmakers changed hands. Tata Steel acquired Bhushan Steel for nearly Rs 35,000 crore in May, and ArcelorMittal and Nippon Steel together acquired Essar Steel for Rs 42,000 crore in December. The deals kept India’s steel supply running.

The company takeovers would have been cumbersome but for the Insolvency and Bankruptcy Code (IBC), a three-year old legislation that has transformed insolvency management in India. Bhushan and Essar were the biggest resolutions from a list of 12 companies identified by the Reserve Bank