Rethinking India’s Inflation Targeting Framework
As India’s Flexible Inflation Targeting (FIT) framework approaches its March 2026 expiry, the Reserve Bank of India’s discussion paper has reignited debate on what India should target: headline or core inflation, what level of inflation is acceptable, and whether the existing inflation band remains appropriate for macroeconomic stability.
What is the RBI’s Flexible Inflation Targeting (FIT) Framework?
- The Flexible Inflation Targeting (FIT) framework is India’s formal monetary policy system under which the Reserve Bank of India (RBI) is mandated to maintain inflation at a target level of 4%, with a tolerance band of ±2% (i.e., between 2% and 6%).
- Introduced ....
Do You Want to Read More?
Subscribe Now
Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material before the last six months of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Related Content
- 1 The Services Sector as India’s Growth Multiplier: Challenges and Policy Pathways
- 2 India’s Clean Energy Leap: Opportunities, Obstacles & the Road to 2030
- 3 Decoding India’s Strategic Reset with Afghanistan
- 4 India, Mongolia Mark 70 Years of Diplomatic Ties
- 5 AI Roadmap for Inclusive Societal Development
- 6 India-Russia Relations: Celebrating Decades of Unwavering Trust
- 7 RTI at 20: Milestones, Challenges and the Road Ahead
- 8 India’s Biotech Surge: Powering Growth Through Science
- 9 Kautilya Economic Conclave 2025: Navigating India’s Path in a Fragmented Global Economy
- 10 Abolition of GST Compensation Cess: Concerns Over States’ Revenue & Fiscal Autonomy
Current Affairs In Focus
- 1 India’s New AI Governance Guidelines
- 2 G20 Summit: High Ambition, Weak Cohesion
- 3 IMF Assessment of India’s National Accounts Data: Key Concerns and Implications
- 4 Impact of Digital Tradecraft on Terror Networks
- 5 Global Ethical Framework for Neurotechnology
- 6 Integrated and Scientific River Management in India
- 7 Deep-Tech Revolution: Transforming Global Agriculture
- 8 Soil Health Impacts of Climate Change & Fertilisers Misuse
- 9 Emerging Carbon Management Technologies: Strategic Solutions for a Net-Zero Future
- 10 Transformation of Food Systems: Balancing Food, Environment & Climate Crisis
