Workers paint the wall of a property development, in Noida, Uttar Pradesh, on Jan. 20, 2020. (Photographer: Prashanth Vishwanathan/Bloomberg)
India is scheduled to review its 4%+/-2% inflation target band in March 2021, as mandated by the Reserve Bank of India Act. The flexible inflation targeting or ‘FIT’ framework itself, or CPI inflation as the policy anchor, are not scheduled for review. Still, commentators are using this opportunity to review the performance of FIT. Such a review throws up some interesting observations.