India expects normal monsoon rains this year

Reuters News
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Posted: Apr 09, 2015 2:26 AM

NEW DELHI (Reuters) - India's summer monsoon rains are expected to be normal this year, the chief economic adviser at the finance ministry said on Thursday.

Monsoon rains are vital for India's farm sector, which accounts for 14 percent of the $2 trillion economy, as half of the country's farmland lacks irrigation. Weak monsoon rains have cut farm output in the past, stoking inflation.

Arvind Subramanian also said inflation is not expected to run up in the medium term due to the recent unseasonal rains, which have damaged over 10 million hectares (24.7 million acres) of crops.

(Reporting by Manoj Kumar; Writing by Rajesh Kumar Singh; Editing by Malini Menon)