Economics
India Plans to Suspend New Bankruptcy Filings for a Year
Shuttered stores and businesses in the Gautam Buddh Nagar district of Uttar Pradesh, India.
Photographer: Prashanth Vishwanathan/BloombergThis article is for subscribers only.
India won’t allow most companies to be tipped into bankruptcy for a year as authorities try to contain the economic fallout of the coronavirus outbreak.
Finance Minister Nirmala Sitharaman announced the plan Sunday as part of her speech to revive economic activity. Also, the minimum threshold to initiate insolvency proceedings have been raised to 10 million rupees ($132,000) from 100,000 rupees previously, and will largely insulate small businesses, she said.