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India’s Insolvency Code Achieves ₹3.89 Lakh Crore Creditor Recovery, Revives Defunct Firms

The IBC has transformed insolvency outcomes with early settlements, reduced liquidations, and significant economic revival, according to officials and studies.

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Overview

  • Over 30,000 cases were settled before admission under the IBC by December 2024, addressing defaults worth ₹13.78 lakh crore and improving credit discipline.
  • As of March 2025, 1,194 corporate insolvency resolution processes (CIRPs) concluded, recovering ₹3.89 lakh crore for creditors—170% of liquidation value and 93% of fair value.
  • Forty percent of corporate debtors resolved were defunct companies, many of which were revived, contributing to job creation and economic activity.
  • Liquidation rates have significantly declined, with the ratio of liquidations to resolutions improving from 5:1 in 2017–18 to 1.3:1 in 2024–25.
  • Post-resolution, firms saw a 50% increase in assets, 130% surge in capital expenditure, and market valuations tripling from ₹2 lakh crore to ₹6 lakh crore.