India’s 4% Inflation Target Is Appropriate, RBI’s Gupta Says

India’s 4% inflation target remains appropriate as price pressures are under control alongwith strong growth, Deputy Governor Poonam Gupta said Tuesday.

Inflation has largely stayed within the 2%–6% band since inflation-targeting framework was adopted in 2016, Gupta said at an event in New Delhi. That track record prompted the government to retain the 4% target with a 2% tolerance band on either side. The next review is due in 2031.