During a seminar hosted by the National Council of Applied Economic Research (NCAER), Poonam Gupta, Deputy Governor of the Reserve Bank of India (RBI), discussed the possibility of adjusting India's inflation target and tolerance band if the economy exhibits robust growth and stable inflation over the next five years. Currently, the inflation target is set at 4% with a 2% tolerance band, valid through March 31, 2031. Gupta emphasized that any changes would depend on the economic landscape, particularly the interplay between inflation and growth. She noted that while the current framework has been effective, external shocks could necessitate maintaining the existing band size. The RBI anticipates that headline inflation will average 4.6% in fiscal year 2027, suggesting a cautious approach to any potential adjustments in the inflation targeting framework.