BS EDIT: Monsoon boost for economic prospects

By Business StandardPublished On Oct 1, 2024

Monsoon exceeds expectations

India recorded 8% above average rainfall in 2024, at 108% of the long-period average, benefiting most regions despite uneven distribution

Impact on agriculture

Higher rainfall has led to a 1.5% increase in kharif sowing, with crops like paddy, pulses, oilseeds, and sugarcane showing growth year-on-year

Promising rabi outlook

Ample soil moisture and higher reservoir levels provide favourable conditions for rabi crops like wheat, mustard, and lentils

Inflation and growth

With retail food inflation at 5.7%, higher sowing and stable international prices could ease inflation and support economic growth

Reservoir levels rise

Reservoirs now hold 157.159 billion cubic metres of water, 87% of live storage capacity, compared to 127.713 billion cubic metres last year

Long-term water management

While a good monsoon brings short-term optimism, policymakers must focus on long-term water management and climate change resilience

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