A widely endorsed view of markets holds that “capitalism without bankruptcy is like religion without hell.”
Thus, as new research notes,
[B]arriers to firms exiting the market, such as the costs of bankruptcy, laying off workers, and selling or repurposing assets, can stifle firm creation and weaken an economy.
The authors then note that
… exit costs in India are high: The annual exit rate among Indian manufacturers is 3.1 percent, one of the lowest rates in the world, and voluntary closure typically takes at least 4.3 years—2.8 of which are spent securing clearances and refunds from government departments.
The research then