The Insolvency and Bankruptcy Code (IBC), which was introduced in 2016, was designed to streamline and strengthen India’s insolvency resolution process. However, recent developments suggest that the effectiveness of IBC is now under strain. Concerns have emerged about delays, judicial interventions, and deviations from the original intent of the law.
The IBC was enacted with the aim of consolidating and simplifying the insolvency resolution process in India. It replaced several fragmented laws and created a unified, time-bound mechanism that facilitates the resolution of distressed assets while strengthening the rights of creditors.
Before the introduction of the IBC, India had several mechanisms for addressing insolvency, but these were often slow and ineffective. These included:
Sick Industrial Companies Act (SICA),
Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI), and
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI).
These frameworks were insufficient, leading to the rise of Non-Performing Assets (NPAs), a decline in lender confidence, and a slow recovery process.
Time-Bound Resolution:
The IBC mandates that insolvency cases must be resolved within 180 days, extendable to 330 days in exceptional cases. This strict timeline aims to minimize asset erosion and restore economic activity quickly.
Creditor-in-Control Model:
Unlike earlier frameworks where debtors retained control, the IBC empowers creditors to take charge of the resolution process. This has improved credit discipline and borrower accountability.
Maximization of Asset Value:
The IBC emphasizes maximizing the value of distressed assets, whether through restructuring or liquidation, ensuring creditors recover the highest possible value.
Equitable Treatment of Stakeholders:
It ensures that creditors—both financial and operational—are treated fairly by providing a structured hierarchy for claim settlement.
Promoting Entrepreneurship and Fresh Start:
The IBC encourages entrepreneurial risk-taking by offering a clean exit for failed businesses, which promotes fresh starts and reduces the stigma of failure.
Institutional Support and Transparency:
Institutions like the Insolvency and Bankruptcy Board of India (IBBI) and National Company Law Tribunal (NCLT) play a key role in ensuring transparency and accountability in the resolution process.
The IBC has seen significant activity since its inception. Over 30,000 cases involving defaults worth ₹13.8 trillion have been settled before formal admission. Additionally, creditors have recovered around 32.8% of their claims through the process. However, there are mounting concerns over the declining number of corporate insolvency resolution cases, with the number dropping from 1,262 cases in FY23 to 723 cases in FY25.
Delays in Resolution Process:
Despite the time-bound resolution mandate, the IBC process often exceeds the 330-day limit. Some cases have taken over 717 days to resolve, which leads to value erosion and undermines investor confidence.
Declining Corporate Insolvency Cases:
There has been a noticeable decline in the initiation of insolvency cases under the IBC, raising concerns about the law's effectiveness in addressing corporate distress.
Low Recovery Rates for Creditors:
Creditors have recovered only around 31-32% of their claims in recent years, which is lower than expected and highlights inefficiencies in the resolution process.
Judicial and Regulatory Challenges:
Frequent Supreme Court interventions have sometimes reopened settled cases, creating uncertainty. Additionally, inconsistent tribunal rulings and regulatory uncertainties have added unpredictability to the insolvency process.
Institutional Capacity Issues:
NCLT has struggled with vacancies and insufficient infrastructure, resulting in significant delays in case resolution. Despite recent efforts to improve staffing, the backlog remains a concern.
Shift in Creditor Preferences:
Financial creditors are increasingly looking to explore alternative mechanisms, such as the securitization of stressed assets, rather than referring cases to the IBC. This reflects a shift in approach toward distressed assets.
To address these challenges, several measures should be considered:
Timely Resolution:
The primary goal of IBC—time-bound resolution—needs to be strictly adhered to. Delays should be minimized to maintain investor confidence and reduce asset erosion.
Creditor Rights Protection:
The original framework, which prioritizes creditor claims, should continue to be upheld to maintain the balance between creditors and debtors.
Judicial and Executive Alignment:
It is crucial that courts and regulators work in harmony to preserve the IBC's original intent. A coordinated effort will ensure smoother implementation and avoid reopening settled cases unnecessarily.
Institutional Capacity Enhancement:
Strengthening NCLT and other adjudicating bodies by improving staffing and infrastructure can significantly reduce backlogs and improve case resolution speed.
Exploring Alternative Mechanisms:
Encouraging creditors to utilize a mix of options, including securitization and other structured debt resolution models, can provide flexibility in tackling distressed assets effectively.
While the IBC has undoubtedly been a significant reform in India’s insolvency landscape, its implementation has faced several challenges, including delays, low recovery rates, and institutional capacity issues. To ensure its continued success, timely resolutions, a focus on protecting creditor rights, and greater alignment between the judicial and executive branches are key steps forward.
India marked International Tiger Day on July 29, 2025, alongside 12 other nations, to raise awareness about tiger conservation globally.
Date: Observed annually on July 29.
Purpose: To promote awareness about the importance of tiger conservation and efforts to protect these majestic creatures and their habitats.
Theme for 2025: "Securing the future of Tigers with Indigenous Peoples and Local Communities at the heart". This year’s theme emphasizes the role of indigenous communities and local people in tiger conservation and the necessity of their involvement in safeguarding tiger populations.
International Tiger Day was established during the Saint Petersburg Tiger Summit in Russia in 2010, where 13 tiger-range countries, including India, Russia, Nepal, Bangladesh, Bhutan, and Malaysia, came together. The summit was held following alarming reports that the global tiger population had dwindled to around 3,000 tigers in the wild.
Tx2 Goal: At the summit, the countries adopted the Tx2 goal, aiming to double the global tiger population by 2022 through coordinated conservation efforts, stronger protection laws, and habitat restoration. This goal was pivotal in refocusing global attention on tiger conservation.
Date Selection: The 29th of July was chosen as International Tiger Day because it marks the halfway point between the first and last days of the Saint Petersburg Tiger Summit, symbolizing ongoing global efforts to rescue and conserve tigers.
India has emerged as the world’s largest tiger habitat and now hosts 75% of the world’s wild tiger population, a testament to the country’s conservation successes.
Population: India is home to more than 3,600 tigers, which is double the number recorded just over a decade ago. This remarkable recovery is a result of dedicated conservation efforts under initiatives like Project Tiger, which was launched in 1973.
Habitat: These tigers roam across 138,200 sq.km of forested areas in India, which is roughly half the size of the United Kingdom. Despite this vast habitat, India faces high human density, with over 60 million people living in proximity to tiger reserves.
Challenges: India holds only 18% of the world’s tiger habitat, yet the country remains the stronghold for global tiger conservation. Managing human-wildlife conflict and safeguarding these areas from poaching and habitat destruction continue to be significant challenges.
The Project Tiger initiative, launched by the Government of India, has been instrumental in ensuring the preservation of tiger populations. The project provides funds for the protection of tiger reserves, engages in habitat restoration, and focuses on mitigating human-wildlife conflict. As a result, India’s tiger population has steadily increased, making the country a global leader in tiger conservation.
The celebration of International Tiger Day also underscores the importance of international cooperation. The Tx2 goal is part of a broader conservation agenda that sees countries like India partnering with others in the tiger range to ensure sustainable and effective protection for the species.
The Setubandha Scholar Scheme is a significant initiative that aims to integrate students from traditional gurukuls into the formal research ecosystem of IITs (Indian Institutes of Technology). This scheme provides opportunities for students who have studied in gurukuls to earn recognized qualifications and pursue research in interdisciplinary fields at some of the country’s top institutions.
Objective: The scheme aims to bridge the gap between India's ancient gurukul system and modern scientific inquiry, creating a pathway for traditional scholars to enter the research ecosystem of IITs.
Target Group: Students who have completed at least five years of study in a recognized gurukul and have shown excellence in Shastras or traditional knowledge.
Sponsorship: The scheme is supported by the Ministry of Education and is implemented by the Indian Knowledge System (IKS) Division of the Central Sanskrit University (CSU).
National-Level Program: This is the first national-level initiative to formally recognize and integrate traditional scholars into the research environment of IITs.
Interdisciplinary Fields: The scheme covers 18 interdisciplinary fields including:
Ayurveda
Cognitive Science
Architecture
Political Theory
Grammar
Strategic Studies
Performing Arts
Mathematics
Physics
Health Sciences
Fellowships: The scheme offers substantial financial support, with two categories of fellowships:
Category 1: Equivalent to Postgraduate level scholars, offering Rs 40,000/month and an annual research grant of Rs 1 lakh.
Category 2: Equivalent to PhD level scholars, offering Rs 65,000/month and an annual research grant of Rs 2 lakh.
Study Requirements: Applicants must have studied for a minimum of five years in a recognized gurukul and must demonstrate excellence in Shastras or other traditional knowledge fields.
Age Limit: The maximum age for applying is 32 years.
Recognition of Traditional Knowledge: The scheme provides a formal platform for the integration of ancient Indian wisdom with modern scientific research.
Access to Elite Research Institutes: It opens up prestigious research opportunities at IITs and aligns traditional learning with contemporary academic standards.
Fellowship and Grants: The financial assistance is designed to support scholars in their research and academic pursuits, ensuring they have the resources to contribute meaningfully to the fields of knowledge.
India’s maritime ambitions in the Bay of Bengal are central to its geopolitical and economic strategies, but there are several challenges that need to be addressed to strengthen its leadership in the region. Despite India's progress in port infrastructure and regional trade, factors like geopolitical competition, maritime security threats, and environmental vulnerabilities continue to pose significant hurdles.
Location: The Bay of Bengal is bordered by India's eastern coastline and serves as the gateway to Southeast Asia. It is a crucial maritime route that connects the Indian Ocean to the Strait of Malacca, a critical chokepoint for global trade.
Strategic Assets: The bay is home to India's Andaman and Nicobar Islands, which have important military infrastructure and serve as surveillance hubs.
Natural Sphere of Influence: Historically, India has viewed the Bay of Bengal as its ‘natural sphere of influence’, shaping both its security doctrines and foreign policy.
Trade & Connectivity: The bay links South Asia with Southeast Asia, enhancing global trade and economic integration with neighboring countries through port development and logistics infrastructure.
Geopolitical Influence: India’s presence in the Bay of Bengal enhances its regional leadership, countering external influence and ensuring maritime stability.
Energy & Resources: The region is rich in natural resources like oil, gas, and fisheries, which are critical to India’s economic growth and energy security.
Security: India plays a pivotal role in maintaining maritime security in the Bay, addressing challenges like piracy, illegal fishing, and transnational crime.
Environmental & Climate Impact: The region is highly vulnerable to climate change impacts, including rising sea levels and cyclones, making sustainable policies crucial for protecting marine life and coastal communities.
Bangladesh: India’s closest maritime neighbour, with significant trade and infrastructure ties. Shifts in India’s policies can greatly impact Bangladesh.
Myanmar: Crucial for regional connectivity and security, particularly with India’s involvement in the Kaladan Multimodal Transit Transport Project.
Nepal & Bhutan: Depend on India for access to Bay of Bengal ports.
Sri Lanka: Strategically important, influencing regional shipping routes.
Southeast Asia: India’s engagement through BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) strengthens ties with Thailand and others in the region.
Geopolitical Competition:
China’s presence in the region through deep-water port developments like Kyaukpyu (Myanmar), Hambantota (Sri Lanka), and Chittagong (Bangladesh) is a strategic challenge for India. These ports have potential military and economic implications.
Maritime Security Threats:
Increasing concerns over piracy, illegal fishing, arms trafficking, and natural disasters.
India struggles with coordinating maritime surveillance and security with neighboring countries due to capacity gaps and political sensitivities.
Inconsistent Trade Policies:
India’s withdrawal of transshipment privileges for Bangladesh raised doubts about the predictability and reliability of its trade policies.
Environmental Vulnerabilities:
The Bay of Bengal is particularly vulnerable to climate change, including rising sea levels, cyclones, and coastal erosion. The environmental impact must be managed carefully through sustainable practices.
Naval Presence: India’s Eastern Naval Command and Tri-Service Command in the Andaman Islands play a vital role in deterrence and rapid response to regional threats.
MILAN Naval Exercises: The Indian Navy hosts these multilateral exercises involving countries from Southeast Asia, Africa, and beyond to foster cooperation and security in the Bay.
IORA (Indian Ocean Rim Association): India promotes cooperative maritime governance, focusing on issues like piracy, illegal fishing, and environmental degradation.
Act East Policy: India’s strengthening of ties with Southeast Asian nations through trade agreements and infrastructure projects enhances its strategic presence in the Bay region.
SAGAR (Security and Growth for All in the Region): This initiative focuses on capacity-building, economic cooperation, and security in the Bay of Bengal.
Regional Connectivity: India is promoting BIMSTEC and BBIN (Bangladesh-Bhutan-India-Nepal) frameworks for regional trade and energy diplomacy.
Sagarmala: This initiative is aimed at modernizing ports and improving coastal logistics, which will benefit India’s eastern seaboard.
Transshipment and Trade Facilitation: India’s investments in port infrastructure help streamline trade flows in the Bay region.
India promotes Blue Economy cooperation, which includes initiatives like:
Hydrographic surveys and disaster management training.
Satellite data sharing for monsoon and cyclone predictions.
Green shipping corridors and renewable energy projects in island nations like the Maldives.
Reinforce Multilateralism:
India should promote a stable, rules-based framework for regional cooperation to strengthen its credibility as a benign power.
Transparent Trade Practices:
Predictable trade policies, especially with neighbors like Bangladesh and Myanmar, would enhance regional trust and ensure smoother trade flows.
Joint Infrastructure Projects:
Co-developing ports, digital corridors, and energy grids with partner countries can reduce dependency on external players like China and turn competition into collaboration.
Disaster-Resilient Development:
Joint coastal resilience programs, such as cyclone early warning systems or climate-smart fisheries, can address common environmental challenges and build goodwill across borders.
Security Cooperation Without Overreach:
India should continue to promote maritime security through joint exercises and shared protocols, while respecting sovereignty concerns of littoral states.
India’s ambitions in the Bay of Bengal face significant challenges, but its geopolitical, economic, and security engagements provide a solid foundation for strengthening its leadership in the region. By adopting collaborative approaches and reinforcing regional partnerships, India can enhance its influence and ensure a stable, prosperous maritime environment.
The Defence Research & Development Organisation (DRDO) recently conducted two consecutive successful flight tests of the Pralay missile from Dr APJ Abdul Kalam Island off the coast of Odisha. These tests mark a significant milestone in India's missile development program and showcase the nation’s growing capabilities in precision strike systems.
The Pralay missile is an indigenously developed quasi-ballistic missile that combines cutting-edge guidance and navigation technologies to ensure high precision and versatility in targeting a wide range of threats. The missile’s design allows it to function effectively in multiple combat scenarios, making it a crucial asset for India’s defense strategy.
Solid Propellant: The missile is powered by solid propellants, providing greater stability and efficiency for quick launches and effective flight trajectories.
Multiple Warhead Capability: The missile is capable of carrying multiple types of warheads, providing flexibility depending on the nature of the target and the mission's objective.
Range:
The missile has a range of 150-500 km, making it suitable for tactical and strategic strikes within medium-range distances.
Payload Capacity:
The missile can carry a payload ranging from 500-1,000 kg, which includes conventional warheads, designed to cause significant damage to specific targets.
Guidance & Precision:
The Pralay missile is equipped with advanced guidance systems that ensure high precision during strike missions.
It boasts a Circular Error Probable (CEP) of less than 10 meters, making it a highly accurate missile system.
Terminal Speeds:
It reaches a terminal speed of Mach 6.1, ensuring high velocity and strike capability, which allows it to engage various targets like radar installations, command centers, airstrips, and other critical infrastructure.
Mid-air Path Alteration:
One of its standout features is its ability to change its path midair after covering a certain range, making it more difficult for adversaries to predict its trajectory or counter its attack.
Developed by: The Pralay missile has been developed by the Research Centre Imarat (RCI) under the Defence Research & Development Organisation (DRDO).
Collaborators: The missile project has been carried out in collaboration with other DRDO labs and industry partners such as:
Bharat Dynamics Limited (BDL)
Bharat Electronics Limited (BEL)
Numerous industries and MSMEs that play a critical role in supplying components and systems for missile development.
Tactical Strikes: With its capability to strike precision targets, the Pralay missile will enhance India’s tactical strike capabilities on the battlefield.
Enhanced Defence: The missile’s flexible range and payload options allow India to deploy it in varied defense operations, from conventional military strikes to operations designed to disrupt key infrastructure in enemy territories.
Indigenous Production: The successful development and testing of the Pralay missile bolster India’s self-reliance in defense production and reduce dependence on foreign missile systems.
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We provide offline, online and recorded lectures in the same amount.
Every aspirant is unique and the mentoring is customised according to the strengths and weaknesses of the aspirant.
In every Lecture. Director Sir will provide conceptual understanding with around 800 Mindmaps.
We provide you the best and Comprehensive content which comes directly or indirectly in UPSC Exam.
Offline/Online Class
