IL&FS crisis: India's 'too big to fail' moment?

The government is intervening to try and contain the IL&FS default crisis. Is this India’s “too big to fail” moment? That reference to the US-led subprime crisis of 2008 may sound excessive until you realise that sentiment across the NBFC sector is tied to effectively quarantining IL&FS and ensuring that default from there doesn’t cause contagion in the form of cascading defaults from creditors who in turn, will find it hard to service their debts.

Problems in the financial sector cause more long-term grief than problems elsewhere. India already has an ongoing banking crisis. The IL&FS collapse could trigger a crisis