Home India Ministry of Finance Notification of the Inflation target for 5 year period begin...
Date: 2026-03-25 Category: Extra Ordinary State: Union Government Country: India

Notification of the Inflation target for 5 year period beginning from 1st April 2026 and ending on 31st March 2031 under Section 45 ZA of The Reserve Bank of India Act 1934.

Issued by Ministry of Finance · Department of Economic Affairs

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Executive Summary & Key Takeaways

**Policy Summary: Notification of Inflation Targets (2026–2031)** The Ministry of Finance, Department of Economic Affairs, issued notification S.O. 1580(E) on March 25, 2026, defining India's inflation targets for the upcoming five-year period. This notification is issued in exercise of the powers conferred by section 45ZA of the Reserve Bank of India Act, 1934, following consultations between the Central Government and the Reserve Bank of India. **Key Metrics and Targets** The following inflation targets are set for the period beginning April 1, 2026, and ending March 31, 2031: * **Inflation Target:** 4% (Four per cent) * **Upper Tolerance Level:** 6% (Six per cent) * **Lower Tolerance Level:** 2% (Two per cent) **Administrative and Contact Information** * **Notification Date:** March 25, 2026 * **File Number:** F.No. e-12/1/2020-FSRL * **Issuing Authority:** Mrs. Aparna Sinha, Economic Adviser, Ministry of Finance * **Publication Authority:** Controller of Publications, Delhi-110054 * **Printing Office:** Directorate of Printing, Government of India Press, Ring Road, Mayapuri, New Delhi-110064 * **Reference Numbers:** REGD. No. D. L.-33004/99; CG-DL-E-25032026-271285

Key Entities Referenced

Reserve Bank of India Act, 1934: The primary legislation, specifically Section 45ZA, providing the legal authority for the Central Government to notify inflation targets in consultation with the bank. Ministry of Finance: The issuing authority (Department of Economic Affairs) responsible for notifying the national inflation target and tolerance levels for the 2026-2031 period. Reserve Bank of India (RBI): The central banking institution consulted by the government to determine the four percent inflation target and its associated tolerance bands.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-25032026-271285 CG-DxLx-xEG-I2D5H0x3x2x0 26-271285 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 1515] नई दिल्ली, बधु िार , माच ि25, 2026/चत्रै 4, 1948 13, 1947 26/पौष 17, 1947 No. 1515] NEW DELHI, WEDNESDAY, MARCH 25, 2026/CHAITRA 4, 1948 ss, 1947 /PAUSHA 17, 1947 जित्त मत्रं ालय (आर्थकि काय िजिभाग) अजधसचू ना नई दिल्ली, 25 माचि, 2026 का.आ. 1580(अ).— केंद्रीय सरकार, भारतीय ररज़िि बकैं अजधजनयम, 1934 (1934 का 2) की धारा 45यक द्वारा प्रित्त िजियों का प्रयोग करते हुए, बैंक के परामिि स,े तारीख 1 अप्रैल 2026 स े िुरू होकर 31 माच ि 2031 को समाप् त होने िाली अिजध के जलए मुद्रास्ट्फीजत लक्ष्य को जनम् नानुसार अजधसूजचत करती ह:ै मुद्रास्ट्फीजत का लक्ष्य: चार प्रजतित। उच् च सहनिीलता स्ट्तर: छह प्रजतित। जनम्न सहनिीलता स्ट्तर: िो प्रजतित। [फा. सं. ई-12/1/2020-एफएसआरएल] श्रीमती अपणा ि जसन्हा, आर्थिक सलाहकार 2193 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 25th March, 2026 S.O. 1580(E).— In exercise of the powers conferred by section 45ZA of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Government, in consultation with the Bank, hereby notifies the inflation target for the period beginning from the 1st day of April, 2026 and ending on the 31st March, 2031, as under: Inflation Target : Four per cent. Upper tolerance level : Six per cent. Lower tolerance level : Two per cent. [F.No. e-12/1/2020-FSRL] Mrs. APARNA SINHA, Economic Adviser Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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