Tuesday, July 28, 2009

Meager Monsoon in India

Today's Wall Street Journal reports "Meager Monsoon Threatens Indian Growth."


June was India's driest in 83 years. Four provinces have declared drought, including Uttar Pradesh.

Monsoon rains are critical for summer crops.

"Two-thirds of India's 1.1 billion people live in villages, and agriculture accounts for around 18% of gross domestic product," writes Abhrajit Gangopadhyay.

India's economic growth slowed to 6.7% in the year ended March 31, compated to 9% a year earlier. Low agricultural output could slow India's economy to less than 5% growth.

(See S. V. Gupt's discussion of the Indian economy in this blog, July 13, "Nishi's House."

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