The much-awaited South West monsoon has hit the Kerala coast. The showers are a blessing for the country, which witnessed the warmest year in 108 years.
With the meteorological department forecasting a normal monsoon this year, there is optimism for India's trillion-dollar economy.
After last year's drought, (though a normal rainfall was predicted) this year's 'normal' monsoon would help boost the agricultural output and bring down the rising inflation.
The monsoon accounts for 80 per cent of the rainfall in India. Even if the monsoon is delayed by few days, it can have an adverse effect on the economy as about half of India's farm output comes from crops sown during the June-September rainy season.
Monsoon is a key to determine agricultural output, inflation, consumer spending and overall economic growth.
While a normal rainfall signals growth and prosperity, a below normal rainfall could spell disaster making food more expensive, aggravating the power, water shortage, hitting industrial production which in turn will put more pressure on the government's kitty.
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