PM Advisor: Bankruptcy Crucial for Healthy Economy, Fosters Innovation & Growth

• Sanjeev Sanyal, PM's Economic Advisor, states bankruptcy is vital for a dynamic, risk-taking economy, promoting continuous churn and new company emergence.
• He cites the 2017 banking crisis, where large bankruptcies strengthened India's corporate sector, and Jet Airways' closure, which opened opportunities for other airlines.
• Sanyal advocates for a safety net for risk-takers but expresses discomfort with freebies, emphasizing support for those who fail.
• He praises India's financial markets, noting Mumbai's growing importance for capital raising, driven by risk-taking equity and venture capital.
• Sanyal predicts India's top 20 companies will transform in 25 years, contrasting with Europe's stagnation, and views bankruptcy as a sign of a risk-taking society.

Why It Matters: PM's advisor argues bankruptcy is essential for economic dynamism, fostering innovation and a risk-taking culture.