In India, this accountability is provided for with sufficient flexibility in the form of an inflation target defined in averages rather than as a point; achievement of the target over a period of time rather than continuously; a reasonably wide tolerance band around the target to accommodate measurement issues, forecast errors and supply shocks; and failure being defined as three consecutive quarters of deviation of inflation from the tolerance band, rather than every deviation from the target.
Let me now turn to the specific aspects of the accountability conditions. Research within the RBI, published in the Report on Currency and Finance 2020-21, and outside it clearly demonstrates that growth is unambiguously impaired when inflation crosses 6 per cent.