Inflation Targeting in India: Select Issues

29 Pages Posted: 2 Dec 2014

See all articles by Charan Singh

Charan Singh

Indian Institute of Management (IIMB), Bangalore

Date Written: December 2, 2014


The adoption of inflation targeting in India has been a much debated topic which also becomes a challenge for the emerging economy. Though inflation targeting has already been adopted in many emerging and advanced countries, acceptability in India is a matter of concern. The paper argues that an emerging country like India needs to consider the composition of consumer price index; state of macro econometric models; and young demographics, unemployment rate and lack of social security before adopting inflation targeting.

To modernize the monetary policy framework, India could consider introducing regular review of the regional economy; instituting a Monetary Policy Committee; and separating debt from monetary management, the paper argues.

Keywords: Monetary policy framework, inflation, inflation targeting, debt management

Suggested Citation

Singh, Charan, Inflation Targeting in India: Select Issues (December 2, 2014). IIM Bangalore Research Paper No. 475, Available at SSRN: or

Charan Singh (Contact Author)

Indian Institute of Management (IIMB), Bangalore ( email )

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