Tuesday, July 28, 2009

Meager Monsoon in India

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

http://online.wsj.com/article/SB124867275575083055.html

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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