IBC at 10: How India’s debt market has evolved

In this episode of the EY India Insights podcast, we explore the evolution of India’s insolvency landscape as the Insolvency and Bankruptcy Code (IBC) marks a decade of implementation. Pulkit Gupta, Partner, Debt and Special Situations, EY India, and Amit Agarwal, CEO, EAAA Alternatives, share their perspectives on how the IBC has moved beyond improving recovery rates and timelines to fundamentally transform India’s credit ecosystem, strengthen investor confidence and unlock value from stressed assets.

Key takeaways

• The Insolvency and Bankruptcy Code has significantly strengthened investor confidence, driving disciplined lending and increasing capital flow into stressed assets and special situations.
• The framework has enabled recoveries exceeding US$40 billion, with bankruptcy courts delivering 65%–70% recovery rates, indicating strong institutional effectiveness.
• A notable shift in credit culture has emerged, with enforceable guarantees and insolvency discipline encouraging timely repayment by borrowers.
• India’s private credit market, currently estimated at US$12–13 billion annually, has the potential to scale to US$50 billion alongside GDP growth.
• Improving judicial capacity and simplifying interim financing processes are critical to ensuring faster resolutions and maximizing value preservation.

Tune in to understand how a decade of IBC reforms has reshaped India’s financial ecosystem and what lies ahead for its evolving debt and insolvency landscape.