Crisis at India Shadow Banks is Worsening

The transcript discusses the ongoing shadow banking crisis in India, triggered by the ILFS group's default over a year ago. This event led to increased borrowing costs and a ripple effect across other shadow banks. The crisis is significant for the Indian economy, especially as growth slows. In response, the government has reduced corporate tax rates and the Central Bank has cut interest rates to improve liquidity. These measures aim to ease the issues in the shadow banking sector.

What impact has the Central Bank's interest rate cuts had on liquidity in the shadow banking sector?

What is the outlook for the shadow banking sector according to recent forecasts?