After prediction of normal monsoon, the Chief Economic Advisor Arvind Subramanian has said that a good monsoon will have positive effect on the Indian economy in many ways and will help bring down inflation, increase rural consumption and added that overall growth of the country too will increase.
Subramanian said that the government has taken a host of measures to improve the agricultural sector in the country and has spent lot of time thinking about how to support agriculture. He said that the 'In some ways crisis has led to a very positive and significant response in terms of addressing agriculture. Obviously much more remains to be done'. Highlighting the importance of increasing agriculture productivity, he said a lower inflation will lead to low interest rates.
Last month, the India Meteorological Department (IMD) has predicted that the country will receive ‘above normal' monsoon this year with a fair distribution of rainfall across major parts of country, easing fears over farm and economic growth after two consecutive years of drought. It said that the monsoon seasonal rainfall will be 106 per cent of the Long Period Average (LPA) with a model error of plus or minus 5 per cent.