Inflation has been a cause of worry for common men, Economists, firms and Policy makers alike across the globe for the past many decades because of its potential to cause severe impact on the economy and on the life of people. The inflationary situation in India has never been encouraging as India witnessed highly volatile inflationary during the six decades post independence. Out of the various policy measures adopted by various countries to curb inflation volatility, the one that yielded the best result was the policy of Inflation targeting (IT). Hence in this book we attempt to study in detail the policy of inflation targeting and the experience of world nations with IT. We also try to bring out the issues related with the inflation targeting framework and empirically study the feasibility of IT as monetary policy framework in India. We also examine the existence any asymmetry in the monetary policy reaction in the India. Suitable econometric tools and models were used in the study to draw the conclusions.