Finance Minister Nirmala Sitharaman has said India’s inflation target band of 2 percent- 6 percent is up for review as the five-year term for the current monetary policy framework draws to a close. The band, on the basis of which monetary policy is decided by a six-member committee headed by the central bank governor, was established in 2016. She said ‘monetary policy committee’s term is coming to an end. Inflation targeting will also have to be reviewed. We shall do that.’
Since coming to power in 2014, Prime Minister Narendra Modi’s government has been able to tame inflation to the given range in the framework. Before the monetary policy framework came into existence India’s inflation was high and volatile driven by fuel and food prices. But during the coronavirus pandemic inflation rose significantly while the economy crashed, creating major challenges for the Modi government that was formulating policies to provide relief to its 1.4 billion population.
Inflation in Asia’s third largest economy returned toward the Reserve Bank of India’s (RBI) 2 percent-6 percent inflation target range in December after remaining stubbornly above the central bank’s comfort range for eight consecutive months.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: