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Industry, government finances at graver risk from drought
Industry, government finances at graver risk from drought

New Delhi/Mumbai, June 16 (TIWN) Weak monsoons -- long known as a nightmare for farmers -- is no longer just considered a grave risk for agriculture but also for India Inc as well as government finances.

In recent years, while farmers have been protected by various government interventions, it is India Inc that has felt the direct impact of below-average rainfall.  The Indian economy, reeling under a consumption slowdown owing to farm distress, stagnant wages and high interest costs, will be hit hard by such a weather phenomenon.  "India's agriculture has become more resilient to monsoon-related shocks on the back of wider irrigation coverage, better quality seeds and timely weather related information. However, a monsoon shock may still cause a drop in agricultural income which could be minimised by government policy intervention," said India Ratings and Research (Fitch Group) Director and Principal Economist Sunil Kumar Sinha.

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