It is almost a decade since India transited to formal Inflation Targeting (IT) regime on 20 February 2015 through an agreement between the Ministry of Finance and Reserve Bank of India, with the commitment to achieve CPI inflation of 4 percent with a band of +/− 2 percent in the medium term.  Conceptually, under this rule-based monetary policy regime, forward-looking expectation plays the pivotal role for transmitting monetary policy shock to the real side of the economy. In an inflationary scenario, when the central bank hikes its policy rate under the IT regime, households and firms knowing that central bank’s action will stabilize the inflation rate at the target in near future, also moderate their future perception about inflation in the economy, thereby reducing the current inflation rate (Gali and Gertler, 2007; Gali, 2008). Hence the success of the IT regime crucially depends on the existence of expectation channel of monetary policy transmission (MPT) in an economy. This study intends to investigate whether monetary policy shock, under both conventional and unconventional monetary policy tools, transmits to the real side of the economy via the expectations channel. The Reserve Bank of India’s survey-based household inflation expectation captures this channel in our analysis. 

Some Indian States are facing high debt-GSDP ratios and in that regard using time series analysis this paper attempts to understand the factors driving the debt positions of states in India. 

The PEFA assessment will provide a framework for assessing and reporting on the strengths and weaknesses of public financial management (PFM) using quantitative indicators to measure performance. The performance indicators focusing on key PFM elements, with evidence based assessments and scoring methodology, will facilitate identifying appropriate future reform agenda including entry points in areas not covered presently. Therefore, the PEFA assessment will help Government of Uttarakhand identify the next level of priority areas for further PFM reforms.

Providing research and consultancy to the Department related to issues including crypto assets, financial vulnerability, regulatory framework of non-banking financial institutions (NBFIs), climate risk disclosure framework, impact of artificial intelligence (AI) on financial market stability, consumer behaviour surveys, strengthening collaboration with the African Development Bank (AfDB) Group, and the European Bank for Reconstruction and Development (EBRD), and India’s Sovereign Credit Ratings.