Deficit monsoon hits India’s FY16 growth forecast to 7.5 percent for the current fiscal through March 2016, from its earlier forecast of 7.7 percent, said the credit ratings agency India Ratings and Research. The country’s gross domestic product, or GDP grew 7.3 percent during the last fiscal.
“Although Indian agriculture has over the years become more resilient to monsoon shocks; agricultural output in a large part of India is still monsoon dependent,” it says.
The credit ratings agency expects agriculture growth to expand to 0.9 percent during the current fiscal, boosted by an increase in sowing of Kharif crop for 2015, it said. Until October 16, the total area sown under Kharif crops were at 10.388 million hectares, higher than the 102.66 million hectares, during the same period a year earlier.
“Despite unforeseen supply side shocks to select agricultural commodities, the overall inflation has remained benign so far in FY16 and Ind-Ra expects it remain so even in the remaining months of this fiscal,” it said.