S&P upgrades India's insolvency regime to Group B
India's insolvency system just got a boost—S&P Global Ratings moved it up from Group C to Group B recently.
This upgrade recognizes big improvements since the Insolvency and Bankruptcy Code (IBC) kicked off in 2016, showing that India is getting better at handling bad loans and helping creditors recover money faster.
Why does this matter?
Average recovery rates for troubled loans have jumped from around 15-20% to over 30%, and resolution times dropped from as long as eight years down to about two.
The IBC has made it easier for creditors—especially in heavy industries like steel and power—to get their dues, boosting confidence in the whole system.
While India still trails behind top-performing countries when it comes to predictability and speed, S&P says recent Supreme Court decisions are reinforcing protection of creditor rights.
It's a sign that India's financial ecosystem is slowly but surely getting stronger.