Growth-inflation performance As I mentioned, monetary policy framework in India shifted from a monetary targeting regime to a multiple indicator regime. Such a transition was conditioned by the developments of financial markets, increasing integration of the Indian economy with the global economy and changing transmission of monetary policy. A pertinent question is how did this transition impact economic outcomes, in particular the growth-inflation performance?
BIS central bankers’ speeches  9  From Table 1, two broad trends can be gleaned. First, real GDP growth, on an average, improved over the period and became less volatile. Second, inflation performance had improved significantly in the last decade coinciding with the adoption of multiple indicator approach. However, inflation performance deteriorated in the years 2010-11 and 2011-12 so far.