International Science Community Association Research Journal of Recent Sciences 2277 - 2502 1 12 2012 December 2 Inflation Targeting as a Plausible Monetary Framework for India 74 78 EN Mohamadian Zahra 1 Department of Computer engineering, Shahrood Branch, Islamic Azad University, Shahrood, IRAN M. Bharani 1 Department of Textile - Fashion Technology, Bannari Amman Institute of Technology, Sathyamangalam, Erode District, TN, INDIA Gowda R.V.Mahendra 2 VSB College of Engineering, Karur, Tamil Nadu, INDIA AdaneAlemmebrat Kiflu 1 Department of Physical Education-Andhra University (AU), Visakhapatnam, INDIA Reddy R.C. 2 SyamBabu M. 3 Mohammed M.B. 1 Department of Applied Science, College of Science and Technology, Kaduna Polytechnic, Kaduna, NIGERIA Mohammed S.S. 2 Adewumi A.A.J. 3 Farshidfar Ramin 1 Sama Technical and Vocational Training College, Islamic Azad University, Qaemshahr Branch, Qaemshahr, IRAN Abbasali Ranjbar 2 Department of Architecture, Sari Branch, Islamic Azad University, Sari, IRAN Srinivas Mondam. 1 Lecturer, Department of Physiotherapy, Windfield International College, Kuala Lumpur, MALAYSIA SrikanthBabu V. 2 Lecturer, Department of Anatomy, MSU, Kuala Lumpur, MALAYSIA KumarB. Raviendra 3 Jalaja Prakash 4 N. Mayavan 1 Department of Futures Studies Madurai Kamaraj University, Madurai, INDIA Sundaram A. 2 VelusamySaranya Akilanpuram 1 Department of Chemistry, Karpagam University, Coimbatore-21, Tamil Nadu, INDIA Subban Ravi 2 Ismail K. 1 Faculty of Management and Human Resource Development, University Technology, MALAYSIA Hussain J. 2 Shah F.A. 3 Hussain A. 4 Ranjbar Abbas 1 Orientology, State University of Yerevan, ARMENIA Tank NileshR 1 School of Mechanical and Building Sciences, VIT University, Vellore-632014, TN, INDIA ThundilKaruppa Raj 2 D. Padmavathi 1 Department of Food and Nutrition, Mother Teresa Women’s University, Kodaikanal, INDIA PrabhavathyDevi N. 2 Department of Home Science, Queen Mary’s College, Chennai, INDIA SheikhKashif Raffat 1 Department of Computer Science and I.T, Federal Urdu University of Arts, Sciences and Technology, Karachi, PAKISTAN MuhammadShahab Siddiqui 2 HIIT, FEST, Hamdard University, Karachi, PAKISTAN Siddiq Muhammad 3 Farhan Shafiq 4 Kumari M. 1 Deptt of Foods and Nutrition, College of Home Science, MPUAT, Udaipur, Rajasthan, INDIA Jain S. 2 RizviSyedKumail Abbas 1 Lahore School of Economics (LSE), Burki Campus, Intersection Main Boulevard Phase VI, Lahore, PAKISTAN Bushra Naqvi 2 SDSB, Lahore University of Management Sciences (LUMS), DHA, Lahore, PAKISTAN Mirza Nawazish 3 > Review Paper 2012 10 5 2012 December 2 Inflation targeting is the famous framework worldwide today. Primary reasons for its increasing popularity include the breakdown of the broad money demand equation owing to financial sector reforms and globalization, which has rendered monetary targeting less reliable and the broader agreement on maintaining a lower level of inflation across several countries including India. In this paper we analyzed the Indian economy with reference to Taylor’s rule. Keeping in view the structure of the economy, objectives of RBI and the basic financial infrastructure of the country, it seems that India is not yet ready for Inflation targeting framework. Copyright@ International Science Community Association