SME Times is powered by   
Search News
Just in:   • India's industrial production registers 1.2 per cent growth in May  • Govt committed to building safe and smart energy future: Minister  • Sanchez defends Spain's defence budget in response to Trump's threats  • Iran says no agreement made to resume US talks  • India’s engineering goods exports to US rose 4.6 pc in May despite tariff turmoil 
Last updated: 28 Apr, 2023  

rural.job.thumb.jpg 'Diversified Indian rural economy may not be impacted by below normal monsoon'

Monsoon.9.jpg
   Top Stories
» India's industrial production registers 1.2 per cent growth in May
» Govt committed to building safe and smart energy future: Minister
» QCOs benefit MSMEs by enhancing product quality, consumer satisfaction: Piyush Goyal
» Stock market opens higher as Trump indicates ‘great’ trade deal with India
» Make GIFT IFSC more competitive to attract foreign investments: FM Sitharaman
IANS | 28 Apr, 2023
Owing to India's rural economy diversified into the non-farm sectors, the overall impact on rural demand and gross domestic product (GDP) may not be large in the case of a below normal southwest monsoon, said CARE Ratings.

In the report 'El Nino & Its Impact on Indian Economy', CARE Ratings said the possibility of a below-normal monsoon this year hinges on a combination of several factors such as the timing and intensity of El Nino and the strength of positive Indian Ocean Dipole (IOD).

A positive IOD favours increased rainfall during the southwest monsoon in India, even in the case of an El Nino event.

Currently, the IOD has returned to neutral conditions. However, as per the Australian Bureau of Meteorology, there is a possibility of a positive IOD event developing with an IOD index ranging between (0.8-1.0) during the June-August period. This could work in favour of the Indian monsoon.

Further, the impact on agricultural production will depend on the spatial and temporal distribution of rainfall.

"Given the existing macroeconomic scenario of elevated inflation and volatile commodity prices, any shortfall in the production of essential food items could pose an upside threat to the inflation outlook. Also, a lower agricultural output would have a bearing on farm income which could weigh on the nascent rural demand recovery," the report notes.

However, due to the sizable diversification of the rural economy towards non-farm sectors, the overall impact on rural demand and GDP is expected to be limited.

Nevertheless, the government should be vigilant and prepare in advance to mitigate harm in case of any production shortfall, CARE Ratings said.
 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Do you think Indian businesses will be negatively affected by Trump's America First Policy?
 Yes
 No
 Can't Say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter