Nomura’s Mukherjee on Indian Economy, Shadow Banking

The video discusses the economic challenges in India, highlighting the unexpected downturn in growth over the past four quarters. Despite this, the government has implemented policy measures like tax cuts and potential monetary stimulus to prioritize growth. The shadow banking sector faces issues with liquidity and credit, but these are not expected to lead to a larger crisis. Asset quality remains a concern, with risks to earnings from bad assets and economic slowdown, but a major escalation is not anticipated.

What are the main economic growth challenges mentioned in the text?

How has the government responded to the economic slowdown?

What expectations are there regarding the revival of the economy?

What impact does the economic slowdown have on earnings according to the text?

What concerns are raised about asset quality in the financial sector?