Indian Economy and Financial Sector Regulators Syed Zahid Ahmad What we expect from financial professionals who just care about financial performances and do not care much about socio economic impacts of any policy? Indian economy is blooming financially but loosing economic growth prospects due to tight credit policy, inflation and fiscal uncertainties. Top from our Prime Minister to RBI Governor all who are involved in managing the economic crisis are financial experts. They have been taught to control liquidity through interest. While during time of Keynes, the foreign capital inflow was not matter of concern. Indian money market liquidity problem has been due to unplanned policies for foreign funds and by increasing rate of interest RBI is in fact inflating the economy further more. Since July 2006 we have been seeing that with every increase in CRR and Repo rate, the rate of inflation has increased. Does 24 months period is not enough for RBI to experiment the monetary suppressing? It is affecting the output negatively and with every increase in credit cost, the output prices are bound to increase. But this could have better understood by any economist, not by persons of finance background who have not learnt anything except interest tool handling. Time has gone worldwide to control the economy through interest rate. Now investors think beyond interest rate and seek higher profitability. RBI should develop policies in coordination with SEBI so that stock market could become active source for capital formation. Investment in equities will not only help economy grow, but control inflation as well. Liquidity should not be dealt by RBI alone because it could be well transformed into capital if SEBI plays active role. It is only possible through better homework by our economists, financial regulators and politicians as well. Otherwise, columnists will keep on writing, politicians will keep on speaking and economy will keep on loosing.