India Faces Below-Average Rainfall Risk as Weak Monsoon Fuels Inflation and Rupee Pressure
Updated
Updated · Bloomberg · May 29
India Faces Below-Average Rainfall Risk as Weak Monsoon Fuels Inflation and Rupee Pressure
4 articles · Updated · Bloomberg · May 29
Below-average rainfall is set to deepen India’s economic strains, adding to energy shortages and pressure on the rupee as a hot, dry spell hits the country.
Weak monsoon rains threaten food output, which can lift inflation and complicate the central bank’s task just as rural growth risks slowing.
Higher power demand is another channel of stress, with hotter weather likely to increase energy use and worsen existing supply concerns.
The weather outlook broadens India’s macro risks beyond growth, tying farm output, consumer prices, energy availability and currency stability more tightly together.
As climate change disrupts monsoons, is India facing a permanent economic threat?
With a plummeting rupee and soaring oil prices, is a deeper crisis inevitable?
Can India's Central Bank tame soaring inflation without sacrificing economic growth?