Monsoon deficit contracts

05 AUG,2019 | MEDC


 

A strong surge in rainfall in the last week of July (42% above normal), enabled this year’s monsoon deficit to contract to 9% at the end of the month. This is good news for the economy as almost half of India’s farmland depends entirely on rainfall for its water supply. The monsoon pattern has a strong bearing on rural demand for FMCGs, gold, vehicles, and agricultural implements. This has direct implications for industrial growth in the country. India’s economy, in particular, continues to depend on the monsoon more than that of any other country of a comparable size and population. Our core sector growth has already slumped to its lowest level in more than four years in June, reflecting an economic slowdown and a lack of pickup in investment. An adequate monsoon could aid in reversing the narrative of weak demand, and enable macroeconomic fundamentals to improve to comfort levels.

*Photo Credit: Google

Comments



Featured Posts



Recent Posts


EMERGING ISSUES IN AEROSPACE INDUSTRY: AN INDIAN PERSPECTIVE


Tourism and its contribution to the Economy


Interactive Meeting with Mr. Jaykumar Rawal Hon'ble Minister for Tourism & Employment Guarantee Scheme Govt. of Maharashtra


De-coding skills-based pro-bono


FOOD PRICE VOLATILITY


Food Inflation in India: An Assessment




Archive




© Copyright 2019 MEDC, All rights reserved
Website Design and Develop By: SCI Knowledge Interlinks