India's government struggles to close ailing state-owned companies, trapping vital capital. Bureaucratic hurdles, complex asset sales, and protracted worker negotiations severely impede timely closures, despite clear policies. Though new rules for land use and retirement schemes exist, implementation is slow, creating a backlog of "dead" enterprises. Decisive government action is crucial to free trapped capital and demonstrate efficient exit conditions. This will attract foreign investment and significantly enhance India's overall investment climate.