PM Narendra Modi backs new CPI target in Independence Day speech

Prime Minister Narendra Modi gave his backing to a new inflation target in a major speech on Monday, saying his government had brought down consumer price growth from double digits under the last government.

Delivering his third Independence Day address, PM Modi backed the 4% inflation target, within a range of 2% points either way, that had been agreed with outgoing Reserve Bank of India (RBI) Governor Raghuram Rajan.

The government formally "notified" the medium-term inflation target just before Rajan held his final policy meeting on August 9.

Figures last Friday showed inflation nudging over 6%, outside the target range.

As independent India turns 70, PM Modi wished the country on Twitter as saying:

स्वतंत्रता दिवस की शुभकामनाएं। जय हिंद।Happy Independence Day. Jai Hind! #IndiaIndependenceDay

— Narendra Modi (@narendramodi) August 15, 2016