IBC's greatest feat

Two years on, it has ended the culture of impunity

It has now been two years since the  major financial reform of the National Democratic Alliance government, the Insolvency and Bankruptcy Code, or IBC, was introduced. The IBC was a long-awaited demand of many economists, who argued that it would speed up the circulation of capital and make the markets for capital more flexible. India had long been bedevilled by what former Chief Economic Advisor Arvind Subramanian used to call the “problem of exit”, meaning that entering a business was easy but exiting it was hard — if a business turned unprofitable, then capital would be locked up in it