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Why has the government flagged monsoon as a risk to Indian economy?
short by Ashley Paul / on Saturday, 30 May, 2026
The possibility of below-normal monsoon has been flagged as a potential risk by Finance Ministry in the Economic Review for May. "Any significant rainfall deficit...could translate into food inflation, weakening rural demand and aggregate growth," the ministry said, noting that IMD predicts monsoon to be 92% of its normal levels. A weak monsoon may also hit dairy operations, it added.
read more at Finance Ministry