Theme: Banking | Inflation targeting: Evaluating the relevance of India's 2-4% framework

In this ‘State of the Economy’ Podcast, Rahul Bajoria, MD & Head of EM Asia (ex-China) Economics, Barclays, helps us understand inflation, monetary policy, and fiscal management in shaping India's economic future.  India's inflation targeting framework has been a cornerstone of monetary policy since the inception of the Monetary Policy Committee (MPC). Bajoria explains how the adoption of flexible inflation targeting was driven by the need to manage elevated inflation levels effectively, and to set the stage for more sustainable economic growth.   Bajoria also speaks about the intricate relationship between fiscal and monetary policies, emphasising the importance of coordination between the two. He also underscores the role of fiscal policy as a counter-cyclical tool for managing inflation, illustrating how the alignment between fiscal and monetary policies has evolved over time to enhance macroeconomic stability.  He also talks about the impact of global factors on India's inflation trajectory, and discusses the implications of rising interest rates in the US and other global markets.  The discussion also touches upon the dynamics of private sector investment, (or Capex), and its role in driving economic growth. Bajoria shares with us his observations on factors influencing corporate investment decisions, highlighting the importance of a conducive policy environment and macroeconomic stability in bolstering investors' confidence.   Listen in to know more.  ----- About the State of the Economy podcast  India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.