India’’s rain deficit could rise to 18%: Goldman
Goldman Sachs stated that from the current 8% rainfall deficit estimated in India, the deficit could increase to 18% during the July-September period according to the India Meteorological Department. However, this in turn would see a decline in the agricultural growth to negative 2% year-on year, down from the previous estimate of 1.4%. Additionally, the monsoon is an integral part of the agricultural growth in India, since 60% of cropland is not irrigated and therefore it relies mainly on the rainfall.
Moreover, it said that the decline in rainfall has worsened from 19% of the long-period average till date last week, to 25% currently, while the rains in summer prepare the ground for the winter crop which might also be affected due to the shortage of rainfall. However, it gave a warning that the October-November festival season is sensitive for the winter crop and as a result may suffer.
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