TNS: Investors are eyeing monsoon with keen interest for market movements
During the week that ended on the 28th of July 2010 India had received rainfall which is thirty percent higher than normal. Most par of the deficiency that India saw in the first seven weeks of the monsoon season has been covered up by Rainfall.
These heavy rains that occurred for one and a half week did not bring an end to the worries of the country. With the announcement of a good rainfall from June till September by IMD, the country’s hope and aspirations had raised.
People felt a bit relieved as the food inflation remained within the limits of fifteen to seventeen percent for the last two months. But the rainfalls in India till 21st of July 2010 were not at per with the projected figure of the IMD, which has raised concerns.
The overall rainfall in India was fourteen percent below the long period average (LPA) from 1st of June to 21st July 2010. The central India which has most of the states that practice agriculture had been affected the most .States like Madhya Pradesh and Uttar Pradesh, along with north eastern India were hit the most.
The rains had been satisfactory in the week that ended on the 28th of July 2010 but still rains were not enough to inspire confidence regarding the overall seasonal rainfall.
Very few people are aware of consequences of scanty rainfall in India that has a service oriented and industrialized economy.
In 2009, Indian economy had grown in the tune of seven decimal nine percent in spite of deficient rainfalls in the monsoon season. India’s seventeen percent of GDP is being accounted by agriculture. Monsoon has a large telling on the overall economic activity of India as sixty percent of the total population of India bank on income based on agriculture.
There are industries in the kinds of manufacturing and processing which include chemical and power generation who largely depend on water and rain deficiency causes them losses. With monsoon rains being good income in rural areas go up ,resulting in a higher demand of consumer goods and farms also buy more seeds, fertilizers, farm equipments and pesticides.
