The India Meteorological Department (IMDo) forecast of a normal monsoon did send cheer to the markets as it came just after Skymet made a similar projection. In FY24, agriculture output saw 1.4 % growth, after seven years of more than 5% average growth. Timely monsoon showers, which are 2% above normal nationally so far, will help farming output grow by about 5% this financial year, up from 1.4% in FY24.
The growth rate in agriculture needs to be maintained at 5% a year for good economic growth. “Some years, the growth rate might hover around 4% or even drop below that. This variability is expected due to the unpredictable nature of agricultural outputs, which is influenced by factors such as weather, market dynamics and policy changes.
Presentation – Dibyabharati Nayak
