Average monsoons: Analysts see farm GDP growing by 3-4%

A normal monsoon season, as projected by the Met department (IMD) could help the agricultural GDP grow by 3-4 per cent this year, a tad lower than last year's, says a report.

The IMD on Tuesday said there would be good distribution of rainfall across the country and it will receive 96 per cent of the long period average. "We believe that the agricultural GDP is most likely to be in range of 3-4 per cent, a tad low compared to 2016-17, if rainfall remains normal," an SBI Research said. It said even in case of deficit rainfalls there are instances where agri-GDP has in fact expanded and smartly grew in slightly more than normal rainfall in 2010 and 2011. In 2009, despite a 22 per cent decline in rainfalls, agri-GDP expanded by 0.8 per cent. The report said the current year's forecast is majorly important for the farm sector with initial reports pointing fingers at the El Ni o which may happen during the later part of the year. PTI

The report said the current year's forecast is majorly important for the farm sector with initial reports pointing fingers at the El Ni o which may happen during the later part of the year.