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Abstract
India is primarily a agrarian economy. According to Weather Department an average or normal monsoon means rainfall between 96 and 104 percent of a 50-year average of 89 centimeters during a four-month season from June. Rainfall below 90 percent of the average is considered a drought. Indian economy is vitally linked with the monsoon because of its water resources. A large part of the country gets more than 75% of the annual rainfall during the four months, June to September.
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Higher farm output would rein in food prices and help the government to take steps to cut the fiscal deficit and farm subsidies. India's food inflation rose to 10.66 percent in May from 10.18 percent in April, latest figures show. As India is worlds second largest exporter of sugar, wheat & cotton, If the monsoon dependant arable/cultivable land doest produces optimum yield not only exports would suffer but domestic economy would slide down. A stronger economic outlook can lift sentiment in equity markets, mainly of companies selling products in rural areas, including consumer goods and automobiles Monsoon rains impact demand for gold in India, the world's top consumer of the metal, as purchases get a boost when farming incomes rise amid high crop output
Due to scanty rainfall large dams reaches a critical level thereby affecting Power generation and giving rise to Power shortages/ Power cuts.