Forecast of Good Monsoon Gives High Hopes to India's Agriculture and Economy

BENGALURU: Director General Laxman Singh Rathore of India Meteorological Department (IMD) has told media that this year the nation can witness an “above normal” rainfall after two years of forlorn monsoon. Good monsoon will benefit agriculture and boost economy, reports Zee News.

Commenting on the IMD forecast, CII Director General Chandrajit Banerjee opined that this prediction would shift better for the industry and would take economy to a higher trajectory of around eight percent growth. He also expressed that the prospect of above normal monsoon would help strengthen farm productivity, boost rural incomes and consumption demand, keeping inflation under check.

"The prospects of normal monsoon along with subdued global commodity prices would keep retail inflation within the five percent mark which in turn should help the RBI to retain the dovish stance towards monetary policy and open up the door for further easing of policy rates during the current year," Banerjee added.

"It is good news. After a couple of years of poor monsoon, India will get better rains especially in Maharashtra and Karnataka, where water in the reservoirs are currently at its lowest. We expect revival of sugarcane crop in these parts of the country," Indian Sugar Mills Association (ISMA) Director General Abinash Verma said.

In the past two years, the amount of rainfall has considerably been less, which resulted in draught and inflation in the market. However, this year, the cracks in the lands of farmers and in the market may get filled with the predicted monsoon, whose odds are estimated to be at 96 percent.

Also Read: Modi Has Given Momentum To India-Gulf Relations: Pradhan
States Must Spend More On Social Sector, Rural Infra: Arun Jaitley