Apart from the legitimate concern regarding growth as a key objective, there are other factors that suggest that inflation targeting may not be appropriate for India. First, unlike many other developing countries we have had a record of moderate inflation, with double digit inflation being the exception, and largely socially unacceptable.
A broader view reveals that another big threat to monetary policy and financial stability is fiscal deficit. Excessive and rolling government securities also affect the effectiveness of monetary policy transmission. The current deficit in China is not large but implicit fiscal deficits are more difficult to deal with.