logo
Monsoon prediction augurs well for farm sector growth, to boost consumption: Ind-Ra

Monsoon prediction augurs well for farm sector growth, to boost consumption: Ind-Ra

Time of India30-04-2025

New Delhi: India Ratings and Research (Ind-Ra) on Wednesday said IMD's prediction of slightly above-than-normal monsoon in 2025 would push
farm sector growth
which along with monetary easing will help India withstand the adverse impact of
reciprocal tariffs
. The
India Meteorological Department
(IMD) has predicted that the seasonal rainfall over the country as a whole is likely to be 105 per cent of Long Period Average (LPA) with a margin of (+/-) 5 per cent. The LPA of the season rainfall over the country as a whole for the period 1971-2020 is 87 cm.
#Pahalgam Terrorist Attack
Pakistan's General Asim Munir is itching for a fight. Are his soldiers willing?
PM Modi chairs 'Super Cabinet' meeting after giving army 'full freedom'
India planning to launch military strike against Pakistan within 24 to 36 hours, claims Pak minister
Ind-Ra said the IMD forecast is good news for not only farmers but also the economy in general. However, a lot would depend on how it is spread over space and time.
If the spread is close to normal without any significant weather shocks due to climate change/shock, India may see another year of reasonable
agriculture gross value addition
(GVA) growth of around 4 per cent.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Unleash Your Creativity with Adobe - The Ultimate Design Partner
adobe.com
Undo
"This augurs well for consumption growth in the economy. We already had two good crops - Kharif 2024 and Rabi 2024, and the expectation of another two good crops in FY26 along with
inflation
under control (closer to RBI's target of 4 per cent) and monetary easing has the potential for the Indian economy to withstand the adverse impact of reciprocal tariffs," Ind-Ra Chief Economist and Head Public Finance, Devendra Kumar Pant, said.
Increased irrigation, a higher share of non-crop in agricultural value added and higher food grain production in the Rabi season have reduced the vulnerability of the agriculture sector to the vagaries of monsoon, Ind-Ra said.
Live Events
Ind-Ra opines that much would depend on the spatial and geographical spread of rainfall over the monsoon months - June to September.
While the proportion of agriculture in the real GVA declined to 14.5 per cent in FY25 from 18.5 per cent in FY12, it has remained the principal contributor to employment in the Indian economy (cultivators and agricultural labourers).
The proportion of employment from the agriculture sector increased to 46.1 per cent in FY24 from 44.1 per cent in FY18.
Ind-ra said the increasing proportion of employment from agriculture at a time when its share in the real GVA is declining has implications for consumption demand growth in general and rural areas in particular.
"Higher irrigated area and improved availability of crucial agricultural inputs such as certified/high-yielding variety seeds, fertiliser and institutional credit have helped the Indian economy to improve its resilience towards weather shocks," Ind-Ra said.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Mumbai NCLT allows 90-day extension of insolvency resolution for Lavasa Corp
Mumbai NCLT allows 90-day extension of insolvency resolution for Lavasa Corp

Time of India

time11 minutes ago

  • Time of India

Mumbai NCLT allows 90-day extension of insolvency resolution for Lavasa Corp

Mumbai: The Mumbai bench of National Company Law Tribunal ( NCLT ) has allowed a 90-day extension in the ongoing consolidated corporate insolvency resolution process (CIRP) of Lavasa Corp beginning May 29. The planned city project is undergoing a fresh CIRP after the NCLT, in September 2024, directed that the entire process be restarted, following the successful bidder's failure to implement the approved resolution plan within the specified time frame. The company has admitted liabilities of more than ₹6,642 crore, while the erstwhile successful bidder, Darwin Platform Infrastructure , had proposed to pay ₹1,814 crore. "We are of the view that the present application deserves to be allowed," the division bench of judicial member Ashish Kalia and technical member Sanjiv Dutt observed on June 2. "Since the CIRP is at an advanced stage and resolution plans have already been submitted by PRAs (prospective resolution applicants), which are required to be considered by the CoC (committee of creditors), the extension is being sought in the interest of value maximisation and to ensure that the objectives of the Code ( Insolvency and Bankruptcy Code ) are duly met." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 모공각화증, 저는 집에서 이렇게 해결했어요 (전후사진) 현명한소비자 Undo

Himachal Pradesh to open areas near India-China border for tourists
Himachal Pradesh to open areas near India-China border for tourists

Time of India

time21 minutes ago

  • Time of India

Himachal Pradesh to open areas near India-China border for tourists

Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Himachal Pradesh will open areas near India-China border , including strategically important Shipki La pass , for tourists.A beginning will be made on Tuesday with Shipki La, which is a high-altitude mountain pass that has been an old trade route between India and Tibet. It has an Army post and the border is manned by Indo-Tibetan Border Police (ITBP). So far, it was open for local residents and for limited trade between India and Tibet. Now, working with defence personnel and ITBP, Himachal Pradesh government has decided to ease restrictions and open up Shipki La Pass for tourists and adventure Indian resident will be able to visit this pass after furnishing an Aadhaar card. The Army will restrict the number of tourists per day. The initial plan is to allow 30 tourists per hour and 210 tourists a day. The tourists will be allowed to go till the border check post and come back. No photography of the strategic posts will be to ET, Himachal Pradesh chief minister Sukhvinder Singh Sukhu said, "We have been working with defence ministry for the last one and a half years to open up border areas for tourism in a restricted manner. We will first open Shipki La pass. Earlier, a permit was required for this area. This will be a big step for people of Kinnaur as we expect more tourist footfalls because of this."Tourists will be able to see the Chinese checkout and even roads within Chinese territory as at this spot the Indian checkout is at a higher level. Sukhu said, "This is just the first step. We will open more areas along India-China border." Himachal government is working towards opening Kaurik and Rangrik areas in Spiti La is in picturesque Kinnaur district at 4,000 m above sea level and is mostly snow covered and inaccessible during winter months. The state has now decided to use the summer months to open up the area for tourism.

India looking for other magnet sources after China's curbs on rare earth metals
India looking for other magnet sources after China's curbs on rare earth metals

Time of India

time21 minutes ago

  • Time of India

India looking for other magnet sources after China's curbs on rare earth metals

India is in talks with China on ensuring the supply of permanent magnets derived from rare earth minerals but is also working on 'alternate sources' for the critical components, commerce and industry minister Piyush Goyal said. He said the government is in constant touch with Indian industry to speed up the development of local sources. China, which controls 90% of the supply of rare earth magnets, has imposed curbs on supplies. These magnets are essential inputs in the manufacturing of cars, electric vehicles and renewable energy equipment, among others. 'There is a concern... our embassy is in dialogue with them (China)... commerce and industry ministry is also working,' Goyal said, adding that the government had already begun work on developing alternate sources. 'Hope Good Sense Prevails' Goyal was speaking to reporters after his interaction with local industry in Bern. "In a way, it's a wake-up call for all those who have become over-reliant on certain geographies. It's a wake-up call for the whole world that you need trusted partners in your supply chain,' the minister said. Auto industry and other industry bodies have represented the matter to the government seeking an early resolution of the problem. China had in April mandated special export licences for seven rare earth elements and related magnets. It is seeking an undertaking that permanent magnets it supplies will not be re-exported to the US, nor will they find applications in the defence industry. ET reported on June 4 that nine auto component manufacturers have received endorsement from the Chinese embassy in India for importing critical rare earth magnets, but supply has not resumed as the neighbouring country's commerce ministry has not given its nod. "Obviously, there are issues around the stopping of permanent magnets from China to India, which will affect our auto sector, particularly, and several white goods and other sectors. Some companies have put in their applications, and we hope that good sense prevails and they get their approvals for permanent magnets," the minister said. The Centre is also looking to Indian Rare Earths Ltd to speed up the development of domestic resources, Goyal said. Asked if the government will consider a production-linked incentive scheme for these magnets, Goyal said he had discussed the matter with the auto industry and was confident of resolving the matter. "They are in dialogue with our innovators, startups and they say they will take care of any funding requirement or pricing correction that may need to encourage faster rollout and growth of this sector," Goyal said. On alternative sources, the minister said these could also be some technologies that India is developing. "The government, the industry and startups and innovators are all working as a team and we are confident that there may be a problem in the short run but we will emerge winners in the mid to long runs," he said. (The reporter is in Bern at the invitation of the ministry of commerce & industry)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store