In India presently the nominal long term interest rate on deposit is around 6% and present inflation rate is around 7%. What is the real rate of interest and what does it mean for the depositors? Will the borrowing for investment in this scenario be high or low? Does this amount of borrowing for investment depend on investors' expectation about future business prospect? If so, what will be the nature of relation between investors' expectation about future business prospect and actual investment?