Monsoon rainfall, crucial for India's agriculture, is expected to be normal this year, with experts believing that good rains will lead to higher sowing of crops, boost farm income, and in turn, the rural economy, and also help rein in food inflation.
A rise in global food prices and government spending though are critical factors to watch out for, they said.According to Aditi Nayar, chief economist, Icra Ltd, the forecast of a normal monsoon comes as a relief, given the early rise in temperatures and reservoir storage that is trailing year-ago levels by a margin of 8 percentage points. “Nevertheless, the temporal and spatial distribution of the monsoon rains will remain crucial.