Sanjeev Sanyal: India Needs More Bankruptcies for Dynamic Economy

• Sanjeev Sanyal, EAC-PM member, states India needs to embrace bankruptcies for a dynamic, risk-taking economy.
• He emphasizes "continuous churn" where old companies fail and new ones emerge, citing the 2017 bank stress and Jet Airways as examples of positive outcomes.
• Sanyal believes bankruptcy is not a moral failure but a natural part of growth, advocating for a safety net for risk-takers, despite discomfort with "freebies."
• He highlights India's strengthening financial markets and hopes for significant changes in top companies, contrasting this with Europe's stagnation.
• Regulators must intervene if large companies misuse power, but success itself should not be viewed negatively.

Why It Matters: Embracing bankruptcy is crucial for India's economic dynamism and growth, fostering a risk-taking culture.