New Delhi, Dec. 27 -- India needs to be comfortable with people and companies going bankrupt, as continuous insolvency and bankruptcy are essential for building a risk-taking and dynamic economy, said Economic Advisory Council to the Prime Minister (EAC-PM) member Sanjeev Sanyal.

In an interview with ANI, Sanyal said a healthy economic system must allow for "continuous churn", where old companies shut down, and new ones emerge to take their place. He stressed that constant change is necessary for long-term economic strength.

Sanyal said allowing large companies to fail is sometimes unavoidable. Referring to 2017, he recalled that Indian banks were under severe stress, following which the government allowed some of the country's biggest ...