climate conditions of india has great significance on its economy justify
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BUSINESS ECONOMY
ECONOMY
How does the monsoon affect the economy?
Children enjoy the drizle heralding the arrival of the South West Monsoon in Thiruvananthapuram on May 30, 2017.
Children enjoy the drizle heralding the arrival of the South West Monsoon in Thiruvananthapuram on May 30, 2017.
Sanjay Vijayakumar
CHENNAI 11 JUNE 2017 21:47 IST
UPDATED: 11 JUNE 2017 22:23 IST
Earlier this year, the India Meteorological Department (IMD) had predicted the country would get normal monsoon rains in 2017. The state-run weather body last week said India’s annual monsoon rainfall is expected to be 98% of the long-period average (LPA), up from 96% projected earlier, raising prospects of higher farm output and economic growth.
The forecast has a margin error of 4%. The monsoon is considered normal if rains in the June-September season are between 96% and 104% of a 50-year average of 89 cm.
Why are monsoon rains important for India?
The monsoon is the lifeblood for India’s farm-dependent $2 trillion economy, as at least half the farmlands are rain-fed. The country gets about 70% of annual rainfall in the June-September monsoon season, making it crucial for an estimated 263 million farmers.
About 800 million people live in villages and depend on agriculture, which accounts for about 15% of India’s gross domestic product (GDP) and a failed monsoon can have a rippling effect on the country’s growth and economy.
Whereas, a normal to above-normal and well-distributed monsoon boosts farm output and farmers’ income, thereby increasing the demand for consumer and automotive products in rural markets.