*Associate Professor and Chairman, BOS, Department of Commerce, Telangana University, Nizamabad, E-mail ID: tsnchary@gmail.com
**Assistant Professor, School of Management, University of Hyderabad, Hyderabad
Online published on 13 February, 2014.
The Indian economy is creeping very slowly towards many troubles of economy in nature. It is due to the overheating policies and strategies without having any intangibility towards real economic principles. Among various macroeconomic parameters the real interest is one, which a cause for even the dancing of inflation and exchange rate in recent past. The real interest rate in India is continues to be very negative-in fact India's real interest rate (as computed by IMF) remains one of the lowest among emerging markets. This is intensified by the hugely negative fiscal balance and inefficient policies of controlling the financial terrorism that is evident everywhere in the economy. The present paper is a modest attempt to discuss on the concept, features. Determinants, relevance of positveness, trends and policy issues of real interest rate in India in an analytical way.