After surviving the most severe depression since 1929, Indian economist are finally breathing a sigh of relief as things are finally falling in the right places. This augers well for India, as the damage effectuated by this economic downturn wasn't so serious as it could have well turned out to be. With the Reserve Bank going all out in its bid to restore the stability in the turbulent market of the country, a cut in the repo rate, Cash Reserve Ratio (CRR) looks a part of its immediate relief program. These emergency instruments which are being used to tame the tumultuous market conditions are at least for the time being are fetching the desired results, much to the delight of our country citizens and of the economical wizards. However, it still remains to be seen whether these moves will continue to sustain their effect or not. Another important question that lies ahead of us is whether these immediate relief measures could have possible side-effects or not? All said and done, but one thing that needs to be applauded is the way how our government had handled this whole issue despite drawing a flak from all the quarters. Certainly, they would have taken cue from the other countries' mistake. Thankfully, they have exhibited quiet a good level of maturity in dealing with the crisis. However, although the crisis failed to impact the foundation of our economy (which is laid on strong fundamental principles), but of late we are finding it exceedingly hard to battle its after-effects. As a result, these last-time jitters have send shivers down the spine of investors' base who are still hesitating to come out and trade. This is also terrifying the foreign investor base which accounts for our huge foreign reserve, which has seen a tremendous down slide in the recent time period. Although, the liquidity void has been adequately filled by the induction of capital in the blocked arteries of the economy but this has certainly ignited the possibility of inflation index going beyond the mark of 12 percent soon in the near future.