<p class="MsoBodyText2" style="margin: 0in 34.2pt 0pt 0.5in;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">This paper examines the empirical association between stock market development and economic growth for a period of ten years around the Indian market &ldquo;liberalization&rdquo; event.<span style="mso-spacerun: yes;">&nbsp; </span>We find no support for the hypothesis that the Indian stock market development is associated with the economic growth in that

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... ry during the entire event study period of 1981 to 2001.<span style="mso-spacerun: yes;">&nbsp; </span>We find support for relevance of stock market to econmic development during the pre-liberalization sub-period.<span style="mso-spacerun: yes;">&nbsp; </span>We also find a negative correlation between stock market development and economic growth for the post-liberalization period.<span style="mso-spacerun: yes;">&nbsp; </span>We offer a number of hypotheses consistent with the inverse relationship between growth and stock market development in the post-liberalization period.<span style="mso-spacerun: yes;">&nbsp; </span>In particular, our results are consistent with the suggestion that the Indian Stock market is a casino for the sub-period of<span style="mso-spacerun: yes;">&nbsp; </span>post liberalization and for the entire ten-year event study period.</span></span></p>