<h1>Financialisation risks: safeguard policy making to align financial incentives with national growth and limit market-driven distortions.</h1> India must guard against the dominance of financial markets-financialisation-because it can create reliance on asset-price growth, elevate visible and hidden leverage, exacerbate inequality, and unduly influence policy and regulation. The policy imperative is to balance financial sector development with measures that align incentives to national growth objectives, considering household savings, investment needs, and financial literacy. Concurrently, observed trends-surplus system liquidity, strong bank profitability, rising consumer credit share, growth of NBFC and bond-market financing, and increased equity-based financing-require calibrated regulatory attention to prevent destabilising financialisation.