Vol. 6, Issue 2, Part A (2024)

Monetary policy in India has been a crucial mechanism for navigating the complex landscape of economic growth and stability. This research review examines the evolution and impact of India's monetary policy from 2010 to 2024, focusing on how the Reserve Bank of India (RBI) has balanced the microeconomic needs of the nation with broader macroeconomic stability. The period under review witnessed significant shifts, particularly with the adoption of inflation targeting in 2016, which marked a strategic move to stabilize prices amidst fluctuating global and domestic conditions. This review synthesizes insights from a wide range of studies, evaluating the effectiveness of key policy tools such as interest rate adjustments, exchange rate management, and financial stability measures. Findings highlight the successes and challenges faced by the RBI in maintaining economic equilibrium, particularly in the face of global financial shocks and domestic policy shifts. The review also addresses the trade-offs inherent in monetary policy decisions, such as the tension between controlling inflation and promoting economic growth. By interpreting the literature, this article provides a nuanced understanding of the RBI’s strategies and their implications for India’s economic trajectory. It concludes by identifying areas for future research, including the integration of digital currencies into monetary policy and the need for more comprehensive studies on the long-term effects of inflation targeting on economic inequality and growth. This expanded focus is critical for developing more adaptive and effective monetary policies in an increasingly interconnected global economy.