Lack of rainfall threatens India's economic growth
NEW DELHI: India's 7 percent economic growth target may be jeopardized as the weakest monsoon rains in five years threaten harvests, according to economists.
The India Meteorological Department on Aug 10 lowered its monsoon forecast for a second time this season, saying showers in the June-September season will be 13 percent below average, compared with a 7 percent shortfall estimated in June.
Deficient rains may reduce crops as India, where more than half the arable land isn't irrigated, relies on the monsoon to produce food for its 1.2 billion people. Lower farm output may erode the purchasing power of 742 million Indians who live in the countryside, hurting Prime Minister Manmohan Singh's efforts to revive growth in order to create jobs and cut poverty.
