Mumbai, May 5 -- A decade into India's inflation-targeting regime, the Reserve Bank of India (RBI) has opened the door, albeit cautiously, to a possible recalibration of its inflation target and a tighter tolerance band in the next review cycle.

"If the growth-inflation mix evolves as it has in the past 10 years-robust growth, and lower and more stable inflation-one could perhaps consider tweaking the level of inflation and the tolerance band a bit," deputy governor Poonam Gupta said in a speech on Tuesday, adding that this could justify a slightly lower inflation target and a slightly narrower tolerance band.

However, she struck a note of caution, saying that if the global environment remained as challenging as it has been over the pas...