ABSTRACT
India is suffering from monsoon fever means monsoon effecting our Indian economy and its citizens.
We all Indians are praying for the rain and wishing for heavy rail fall but this is not take place which causes staid problem not only the farmers but the whole citizens of the country.
According to some survey and calculation by weather forecast department in India the actual rainfall for the country as a whole is 38.5 mm against a normal of 71.5 mm with a shortage of 45%. Out of the 37 metro subdivisions, rainfall was surplus/ normal in 7, while it was lacking/ scarce in 27 subdivisions.
Brittle monsoons have yet again appeared as a leading jeopardy for the economic expansion as well as price raise. Weak monsoon and the famine in numerous division of the country spoil economic recovery and damage the prospects for higher economic expansion this year.
Strict rainfall (South-Western monsoon) shortage of 26.5% attached with global economic brake could brunt India's GDP turn down to 4.7% in FY 2009.
Rainfall has a prominent connection (more than 61.5%) with agriculture yield and domestic demand(More than 40%), a brutally deficient monsoon could impact India's GDP by 2 percentage points.
India is still surrounded by the countries in the world with a sound growth rate. The growth rates linger decent compare of two repeated distress in the gap with a reduction of 9 months universal liquidity crisis. It is a sign of the stretch of the Indian market and a compliment to its strapped rudiments.
HOW RAIN EFFECT ON ECONOMY OF INDIA:
India is agricultural based country as compare to other countries in world. In which the significance of agriculture as a proportion of GDP has diminished in excess of the precedent slight decades from last many years. In India monsoon is still has the vital function to engagement in recreation in the economy of India as approx 70% of the whole population depends on agriculture. Yet these days 70% of the agriculture is rainfall.
REACTION OF STOCK MARKET DUE TO WEEK MONSOON
The vital perception in opposition to downpour, drought, &flood that it has been seen that if good quality of rain fall maintain the stock market in fabulous frame of mind. If there is under standard precipitation or drought like circumstances the stock market reaction will be severely exaggerated. The influence will be high up because most of the investor's cheerfulness is extremely fragile. Growing value of commodities will make the increases in price, which will make the awareness in the economy to awake. This will manipulate the investment and consumption as well as demand.Splendid monsoon is not merely excellent for Indian economy but also for production, GDP, firms &Industry as well as demand in stock market and commodities and retail markets in India.
WEAK MONSOON MAY INSPIRE INDIA FOR INFLATION.
Weak monsoon in India inspire for inflation because it's entirely outcome in the manufacture units & production of crops due to which production of grains are not up to the score.
The fragile monsoon this year pretense peril to India's development, growth and price rises and decrease in agricultural production may result in privileged dilemma in India and its States effected by rainfall.
CONCLUSION
India's feeble monsoon has get worry economists & citizens, who is panic and might pull down the nation's economic growth.
India's monsoon rain is the most important resource of irrigation for the nation's approximate 230 million farmers, were 28 percent deficient as in month of July and August which intimidating yield of crops such as sugar cane and rice.These are major commodities for export by India to other countries due to which income/revenue of India is affected and it's also effect on GDP of our country and food-price inflation.
(source : internet)
