The article explores how monetary policy affects inflation in different sectors of the Indian economy from 1997 to 2017. It shows that over time, tightening monetary policy has become more effective at controlling overall inflation, thanks to better credit and asset price channels. In particular, manufacturing sector inflation responds more to monetary policy than agricultural sector inflation. The study also reveals that some sectors see higher prices after a monetary tightening, indicating a cost channel effect. The findings suggest that India's monetary authority should consider sectoral inflation when setting interest rates.