Explain the concept “Ease of doing business includes easy exit by investors and creditors that prompts national policy makers' constant endeavour to reform law relating to Insolvency or Bankruptcy”.

Every stakeholder especially investors and creditors chose to get early return on their investments for sustenance. Hence, policy makers constantly reform law relating to insolvency for ease of doing business that includes easy exit also. During last two and half decades, Indian financial system has undergone tremendous transformation. Several financial reforms have been initiated to promote an efficient, well diversified and competitive financial system with ultimate objective of improving the allocative efficiency of resources so as to accelerate economic development. There are reforms in laws and systems to be at par with International Standards and to incentivise the foreign investors to invest in the Indian economy. Committees were formed to find ways to improve the law relating to Insolvency resulting into framing of Insolvency and Bankruptcy Code, 2016.