The Government of India proposes to amend the Insolvency and Bankruptcy Code through an ordinance by adding a chapter on international insolvency. The amended law will remove ambiguities about bankruptcy proceedings and bolster the confidence of foreign investors in India.
The new law, which is a separate section for handling insolvency of cross-border investors, is based on global best practices and will:
- reduce the time for exchanging information with another country
- change key aspects of cross-border insolvency litigation
- give direct access to foreign insolvency professionals and foreign creditors to participate in, or commence local insolvency proceedings against a defaulting debtor
- allow foreign proceedings and remedies to be accepted in Indian courts
- enable cooperation between Indian and overseas courts and insolvency practitioners
- enable coordination between two or more concurrent insolvency proceedings in different countries
Last updated: December 26th, 2025
