Financial system in any economy is what circulatory system to the human body. And banks are what a beating heart for the circulatory system. Banks play the most crucial role in any economy, and when it comes to the Indian economy, it surely does.
In India, banks are not doing terribly well. Indian banks are lending money unwisely resulting in many loans becoming Non-Performing assets (NPAs). When the principal borrowings/interest are overdue for a period generally more than 90 days, the said loan is called as NPAs. When the quantum of NPAs increase massively, banks are supposed to collapse.

India has already grabbed the fifth-highest NPA ratio in the world at 9.85% after Greece, Italy, Portugal, Ireland. The Indian banking industry is therefore in what we all know as secular decline.
Another issue contributing to the Indian financial crisis is of liquidity, there is not enough money in the economy. The government's decision to withdraw money from the economy has left great impact, though it is fading with time, but also leaving it's the worst impact on the economy.

Every business has faced the liquidity crisis and we're trying to get over it, and suddenly Goods and services tax came into effect, weakening the already weak economy. It would have its own impact in the long run, but in the short run, it has broken the financial rib of the overall economy. In this phase, some of the businesses managed to survive, some died slowly and some are still fighting to survive, making the economy weaker as it used to be.

Another massive reason is the government has shifted it's focus from stronger India (financially) to secular India (abolishment of article 370). New opportunities might make their way in Kashmir, but before that, it is necessary to keep the ones that we already have. Indian economy is going to face it's biggest crisis in coming years, it's high time to take some major decisions. Indian economy needs close attention to this financial crisis rather than just talking about countries.