0 months ago
Delayed Monsoon Unlikely to Impact Economy Broadly
The monsoon in India was delayed, but it's not expected to cause big problems for the economy.
Rainfall has improved a lot in June and July, and there's plenty of water in the reservoirs.
India also has a lot of food stored, so prices for cereals shouldn't go up too much.
People in rural areas are still buying things like tractors, and there's good credit available for farming.
So even though sowing was delayed, the economy should be okay.
Delayed monsoon unlikely to cause broader economic impact, per Bajaj Asset Management Limited report.
Rainfall improved significantly in late June and remained strong through July.
Reservoir levels are comfortable, with most river basins at or above long-term averages.
India's food grain stocks are five times the prescribed buffer level, cushioning cereal inflation.
Rural demand remains resilient with 19% year-on-year tractor sales growth in May and 15% agricultural credit growth.
- Who
- Bajaj Asset Management Limited
- What
- Delayed monsoon unlikely to trigger broader economic impact
- Where
- India
- When
- Last week of June, July
- Why
- Improved rainfall, comfortable reservoir levels, high food grain stocks, resilient rural demand
Key facts
- Rainfall Improvement
- Significant improvement in last week of June
- Reservoir Levels
- At or above long-term averages
- Food Grain Stocks
- Five times the prescribed buffer level
- Tractor Sales Growth
- 19% year-on-year in May
- Agricultural Credit Growth
- Nearly 15%
- Non-Farm Income
- High, supporting household consumption
Sources
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