Explainer-India’s economic outlook at the mercy of monsoon

's economic outlook at the mercy of monsoon

The monsoon, which accounts for about 75% of India’s annual rainfall, is the lifeblood of its nearly $3 trillion agriculture-dependent economy.

Asia’s third-largest economy and the world’s leading producer of a range of critical crops such as rice, wheat, and sugar has received 11% more than average monsoon rain since the four-month period began on June 1. Average monsoon rainfall is between 96% and 104% of the 50-year average of 89 cm per season.

However, the patchy nature of this year’s monsoon — spotty in some areas, torrential downpours in others — has raised concerns about yields and crop production, complicating the government’s efforts to tame inflation.

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