India retains 4% inflation target for next 5 years, 2-6% tolerance band

• Indian government maintains 4% inflation target for April 1, 2026, to March 31, 2031.
• The target includes an upper tolerance level of 6% and a lower tolerance level of 2%.
• This decision provides continuity to monetary policy and anchors inflation expectations.
• India adopted the inflation-targeting regime in 2016, tasking RBI with price stability.
• RBI's assessment found the flexible inflation targeting framework largely satisfactory over nine years.