Dear Readers,

We will commemorate World Environment Day on June 5th. In an effort to save Mother Earth from environmental threats, this day is observed globally. World Environment Day in 2025 will have the theme ‘Ending Plastic Pollution Globally’. Around the world, people commemorate World Environment Day in a variety of ways, such as by planting trees, cleaning up local beaches,not wasting water and paper, holding meetings, and participating in online and offline protests. By saving resources, lowering pollution, and encouraging sustainable living habits, we must all do our part to lessen our ecological imprint.

Around the world, especially in India, Nepal, and Sri Lanka, people will celebrate the holy occasion of Ratha Yatra on June 27. Along with His brothers Balabhadra (Balram) and sister Shubhadra, Lord Jagannatha, the manifestation of Lord Krishna, an incarnation of Lord Vishnu, will be worshipped on this day. The principal shrine (temple) of Lord Jagannatha is in Puri, Odisha. On this day, the devotees drive a gorgeously decked chariot in which the deities of Lord Jagannatha, Balaram and Shubhadra are placed. In Puri, thousands of disciples attend this festival. Many legends describe how Lord Jagannatha appeared to His devotees to help them in times of need amazingly.

There are many folklores associated with Lord Jagannath. As much as people love good food, Lord Jagannath also likes His khichdi, which is made with rice, pulses, and spices. Born into a modest family, Karmabai was a typical country girl. She had an unshakeable devotion to Lord Jagannath. She believed that Lord Jagannath Himself would come to consume the food she prepared for Him every morning before daybreak. Lord Jagannath is said to have come as a small kid and consumed the khichdi after being moved by her sincere devotion. Since then khichdi is offered to Lord Jagannath and distributed among the devotees.

Indian Economy: According to BVR Subramaniam, CEO of NITI Aayog, India has surpassed Japan to become the fourth largest economy, and the country’s overall geopolitical and economic climate is favourable. India’s GDP expanded by 7.4% in Q4FY25. The overall GDP growth rate for FY25 came at 6.5%, driven by construction, hospitality, transportation and agriculture.

According to FM Nirmala Sitharaman, uncertainty might reduce capital investment and related transactions while also interfering with promptness. Numerous approvals raise capital expenditures and costs due to interest, outside influences, and other infrastructure expenses, which puts businesses in debt. Lenders are not granting additional time for repaying loans or are not restructuring loans. They would rather use the IBC procedure that is more likely to yield suboptimal results. Entrepreneurs are reluctant to take risks. Because of these considerations, private capital investment is marginal. Organisations like Tata said that it will not expand taking debt. In FY25, India received a record USD 81.04 billion in gross foreign direct investment (FDI), a 14% increase over the previous fiscal year. However, after accounting for money repatriated out of India and all outward FDI from India, the net FDI figure comes to a modest USD 350 million, which is a 96% drop from FY24. Private investment has been underperforming in India. Global appetite for re-investing in India seems to have weakened which explains high repatriation of USD 51.5 billion during FY25. Outbound FDI figure from India stood at USD 29.2 billion, which reflects India Inc is going global and preferring to invest abroad. This subdued interest of the private sector to invest in India is also explained by muted and uneven growth in consumption in the country. India’s CAD is expected to be in the range of 0.9 – 1.3 % of GDP in FY26, with economists predicting upside risks on account of geopolitics and US tariff induced uncertainties on global trade. India now holds a

“Baa3” sovereign rating with a stable outlook, according to Moody’s, which is the lowest investment-grade rating. Government investment will be crucial in supporting the economy’s expansion. The purpose of government PLI programmes is to encourage businesses by offering incentives for increased sales of domestically produced goods. Its goals are to decrease imports and increase the share of the manufacturing sector in GDP.

Family enterprises play an important role in the Indian business scenario contributing to around 79% to the nation’s GDP. Despite having the ability and skill to manage the family enterprises, only 7% heirs are interested to join them because of growing uncertainty, regulations and lack of cooperation by lenders at times of external effect as an enterprise.

Cover Story: Indian states are varied due to a number of factors, including population, geography, industrialisation, education, health, governance, colonial legacy, and policy implementation. With high populations, Bihar and Uttar Pradesh are the poorest states due to their reliance on agriculture, lack of family planning options and societal practice of early marriage. Majority of the population of these states is dependent on farming. Young people are moving to other states and other countries in search of work these days. Red tape, bureaucracy and ineffectual policies continue to be major hindrances to entrepreneurship and growth.

Economic gaps across the states are growing even as the nation’s GDP is increasing. While some states are performing exceptionally well in terms of attracting both domestic and international investments, others are not. The states with the greatest per capita incomes are Telangana, Karnataka, Haryana, Tamil Nadu and Uttarakhand. The relative per capita income of Bihar deteriorated from 70.3% in 1960-61 (when the state was undivided) to 32.8% in 2000-01 (after the state’s bifurcation). The implications of this are indeed dismal as it implies that an average person in Bihar still has an income level 77% lower than an average Indian.

Notably the state of West Bengal could not develop its industrial inheritance due to political factors, labour unrest, etc.

IBC: According to IBC 2016, the Corporate Insolvency Resolution Process (CIRP), which was started by stakeholders like financial creditors, operational creditors, and corporate debtors, is still moving slowly. Even though the average time for resolution plan approval and CIRP completion has significantly increased over the same period, the number of CIRPs started by the aforementioned stakeholders has decreased from 1,262 in FY23 to 723 in FY25. The average time to approve resolution plans has increased from 611 days in FY23 to approximately 850 days in FY25, and the average time to close a CIRP has increased from 614 days to 717 days, which is a significant increase and exceeds the mandated 330-day limit under IBC, even with extensions and litigation periods. All these make it evident that the CIRP has been going beyond the 330-day maximum period within which it must be completed.

Instead of restructuring and amicable settlements, lenders are  preferring the IBC process to honour themselves. Additionally, fewer weak or frivolous files are being made.

The order of Supreme Court halts liquidation process against Bhushan Power and Steel Ltd, orders status quo.

Conclusion: Our Nation has the capacity, assets, and determination to rank among the most powerful economies. “Arise, awake, and stop not till the goal is accomplished,” as Swami Vivekananda had said. He said that India will be one of the largest economies in the world by 2047. It is imperative that the country take action to encourage and unleash private investors’ and entrepreneurs’ animal spirits. The entire family should not be held accountable for an enterprise in trouble due to external factors. When a healthy person falls sick, he is being treated and is being brought back to health. An enterprise when in trouble, needs the treatment to bring back to health.

Dr. H.P. Kanoria

Editor