The Reserve Bank of India (RBI) will start talks with the government for an "appropriate timeline" to ensure the economy is within a medium term inflation target of 2-6%, governor Raghuram Rajan said on Friday.
"Going forward, we will discuss an appropriate timeline with the government in which the economy should move to the centre of the medium term inflation band of 2-6," Rajan said in a lecture at an industry event.
Rajan added "a glide path" towards lowering inflation to those levels worked best for India by ensuring moderate economic growth. The RBI governor also proposed a debate on whether India needed more institutions "to ensure deficits stay within control and the quality of budgets is high," noting other countries had independent bodies that provided opinions on fiscal budgets.