The COVID-19 pandemic led to severe lockdowns, disrupting businesses and raising concerns about increased insolvencies globally. Forecasts by Euler Hermes and the IMF predicted significant rises in insolvency rates. Comparisons were made to the 2008 global financial crisis, but differences in corporate debt levels and the nature of the crisis were noted. In India, despite initial stress, the corporate sector showed resilience due to government support and regulatory measures. Factors such as lower debt financing by Indian firms and risk aversion by banks mitigated the impact. However, the threat of insolvencies remains, especially in sectors most affected by the pandemic, necessitating early interventions.