New Delhi, Oct 14 (IANS): Chief Economist Adviser (CEA) Krishnamurthy Subramanian said on Wednesday that the Insolvency and Bankruptcy Code (IBC) is an evolving process and there is scope for the framework to become more efficient.

Speaking at a webinar on 'Investment Opportunities in Stressed Assets in India', organised by FICCI, Subramanian noted that the ecosystem of creative destruction is a very important part of any economy. He said the exit process for businesses was not enabled well in India before the IBC.

He added that there are some market failures in India in the "creative destruction" process.

"The IBC is an evolving process and there's still scope for making it far more efficient," he said.

Stressed assets are important components of a market economy and focus on various stakeholders that enable a process of creative destruction is very crucial, Subramanian said.

The CEA was of the view that corporate India also needs to recognise and respect the equity contract.