The weaker-than-normal monsoon that is now being forecast by experts for this year threatens to compound the impact of the Middle East conflict on India’s economy. Crop yields could come under pressure at a time when there is already a shortage of fertiliser. And lower hydroelectricity production could further strain power generation. All of this adds to the downside risks to growth and upside risks to inflation. We think the Reserve Bank would worry more about the latter.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services