This paper examines the recent evolution of fiscal and monetary policy in India since the 1991 economic reforms, along with their impact on employment and decent work outcomes. To achieve macroeconomic stability objectives and attract foreign direct investment (FDI), the Government of India committed itself to reducing the fiscal deficit to 3 per cent of GDP through the Fiscal Responsibility and Budget Management (FRBM) Act, while the Reserve Bank of India (RBI) adopted an inflation-targeting framework with a target of 3 per cent.