Real interest rate in India
India: Real interest rate was 5.6% in 2022. ▼ Falling
Real interest rate in India, 1978–2022
Source: International Financial Statistics database, International Monetary Fund (IMF). Measured in %.
Analysis
India recorded 5.6% for real interest rate in 2022.
Compared with earlier readings it is up 1,652.7% on the previous year and up 124.6% over ten years.
Over the whole period, real interest rate in India peaked at 10.8% in 1978 and was at its lowest, -2.0%, in 2010.
India ranks 64th of 149 countries on this measure, in the middle of the range.
The long-run direction has been consistently falling across the 45 years of available data.
Real interest rate in India, year by year
| Year | % | Change |
|---|---|---|
| 1978 | 10.8% | — |
| 1979 | -1.1% | -109.8% |
| 1980 | 4.5% | -521.9% |
| 1981 | 5.1% | +14.3% |
| 1982 | 7.8% | +51.9% |
| 1983 | 7.3% | -5.8% |
| 1984 | 7.9% | +8.6% |
| 1985 | 8.7% | +9.2% |
| 1986 | 9.1% | +4.7% |
| 1987 | 6.6% | -27.9% |
| 1988 | 7.6% | +16.4% |
| 1989 | 7.4% | -2.7% |
| 1990 | 5.3% | -29.1% |
| 1991 | 3.6% | -31.2% |
| 1992 | 9.1% | +152.0% |
| 1993 | 5.8% | -36.3% |
| 1994 | 4.3% | -25.4% |
| 1995 | 5.9% | +35.2% |
| 1996 | 7.8% | +32.9% |
| 1997 | 6.9% | -11.3% |
| 1998 | 5.1% | -25.9% |
| 1999 | 9.2% | +79.5% |
| 2000 | 8.3% | -9.2% |
| 2001 | 8.6% | +3.0% |
| 2002 | 7.9% | -8.0% |
| 2003 | 7.3% | -7.6% |
| 2004 | 4.9% | -32.8% |
| 2005 | 4.9% | -1.1% |
| 2006 | 2.6% | -47.1% |
| 2007 | 5.7% | +121.0% |
| 2008 | 3.8% | -33.6% |
| 2009 | 4.8% | +27.5% |
| 2010 | -2.0% | -141.3% |
| 2011 | 1.3% | -166.4% |
| 2012 | 2.5% | +87.7% |
| 2013 | 3.9% | +56.3% |
| 2014 | 6.7% | +73.2% |
| 2015 | 7.6% | +12.9% |
| 2016 | 6.2% | -17.5% |
| 2017 | 5.3% | -14.5% |
| 2018 | 5.4% | +0.6% |
| 2019 | 6.9% | +28.6% |
| 2020 | 4.1% | -40.0% |
| 2021 | 0.3% | -92.3% |
| 2022 | 5.6% | +1652.7% |
India compared with similar countries
- India's 5.6% is above the median for lower middle income countries, which is 5.2%, 1.1× the median. (38 countries reporting)
- India's 5.6% is below the median for South Asia, which is 7.1%, 78% of the median. (5 countries reporting)
Biggest year-on-year movements
Years where Real interest rate in India changed far more than this series normally does. A large move can be a real event or a change in how the figure was measured — the source note below says who published it.
| Year | Change | From | To |
|---|---|---|---|
| 2022 | +1652.7% | 0.3% | 5.6% |
| 1980 | +521.9% | -1.1% | 4.5% |
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 1970s | 4.9% | -1.1% | 10.8% | 2 |
| 1980s | 7.2% | 4.5% | 9.1% | 10 |
| 1990s | 6.3% | 3.6% | 9.2% | 10 |
| 2000s | 5.9% | 2.6% | 8.6% | 10 |
| 2010s | 4.4% | -2.0% | 7.6% | 10 |
| 2020s | 3.3% | 0.3% | 5.6% | 3 |
Countries ranked near India
More financial sector data for India
- Reserve position in the IMF, US dollar, annual growth rate 13.2 % change on previous year (2025)
- Reserve position in the IMF, US dollar, per unit of GDP 0.0012 units per US$ of GDP (2025)
- Reserve position in the IMF, US dollar, per capita 3.26 units per person (2025)
- Reserve position in the IMF, SDR, annual growth rate 7.8 % change on previous year (2025)
- Reserve position in the IMF, SDR, per unit of GDP 0.0009 units per US$ of GDP (2025)
- Reserve position in the IMF, SDR, per capita 2.38 units per person (2025)
- Reserve tranche position, US dollar, annual growth rate 13.2 % change on previous year (2025)
- Reserve tranche position, US dollar, per unit of GDP 0.0012 units per US$ of GDP (2025)
- Reserve tranche position, US dollar, per capita 3.26 units per person (2025)
- Reserve tranche position, SDR, annual growth rate 7.8 % change on previous year (2025)
Frequently asked questions
- What is real interest rate in India?
- Real interest rate in India was 5.6% in 2022, according to International Financial Statistics database, International Monetary Fund (IMF).
- What is the highest real interest rate recorded in India?
- The highest recorded value was 10.8% in 1978.
- What is the lowest real interest rate recorded in India?
- The lowest recorded value was -2.0% in 2010.
- How does India rank for real interest rate?
- India ranks 64th out of 149 countries with data for 2022.
- Is real interest rate rising or falling in India?
- Over the last ten years it is up 124.6%. The long-run trend across the full record is falling.
- Where does this India data come from?
- The figures come from International Financial Statistics database, International Monetary Fund (IMF), published as part of Real interest rate (%). Statizoid updates them automatically from the source API.
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About this data
An interest rate is the amount charged, expressed as a percentage of the principal over a period of time, by the owners of certain kinds of financial assets for putting the financial assets at the disposal of another institutional unit. The real interest rate is the lending interest rate adjusted for inflation as measured by the GDP deflator. The terms and conditions attached to lending rates differ by country, however, limiting their comparability. This indicator is expressed as a percentage (a÷b)*100.