Despite stickiness in the nominal interest rate, the reduction in the real rate was higher as inflation on an average turned out to be higher. However, in 2012–13 as inflation showed a significant moderation the real lending rate has risen. Why did the investment growth slacken despite moderation in real lending rates?
In this context, let me now turn to micro-level corporate finance data of a fairly large diversified  5  i = r +π; where “i” is nominal interest rate, “r” is real interest rate and “π” is the inflation rate. Fisher, Irving (1930), The Theory of Interest, (New York: Macmillan).