All we have done thus far is to adopt the reasonable suggestion of the Patel Committee that we focus on CPI inflation rather than WPI inflation as our primary objective. The Patel Committee has also suggested a time horizon to glide down to 6 percent inflation that seems doable without extreme hardship.
If the eventual decision of the government, in consultation with the Reserve Bank, is to adopt the recommendations of the Mistry, CFSR, FSLRC and the Patel Committees, and focus on some form of an inflation objective, it would be good for the medium term inflation target to be set by the executive or the legislature, presumably based on advice from the Reserve Bank and other experts the Reserve Bank.