India Programme - Support Development of Insolvency Regulatory Framework in India

The UK and India have a strong partnership in financial services, driven by annual Economic and Financial Dialogues (EFDs) between Finance Ministers. During the meeting between the Prime Minister's Modi and May in April 2018, it was agreed to enhance the collaboration on financial services in particular on Insolvency, through a technical assistance programme . Touted as one of the most significant reforms undertaken in modern era, the Insolvency and Bankruptcy Code (IBC), since its implementation in 2016 has played a significant role in resolving some of the largest and complex cases in the banking system, with the lenders making a significant recoveries, in some cases helping banks to recover 63% of outstanding amount. Therefore, as a next step, the Government of India (GoI) is keen to address the missing feature of the current IBC code by further expanding the ambit of the law and develop the cross-border and personal insolvency regulatory framework. Developing a coherent and transparent insolvency framework will help India not only in providing a crucial debt resolution and insolvency mechanism but will help strengthen the investment climate and advance economic growth, thereby reducing poverty in the country. The UK, which has played a pivotal role in supporting the development of the IBC framework since its implementation is keen to support the GoI in its efforts to strengthen and design the new regulatory framework of insolvency law.