Poor monsoon to affect growth: Montek Singh Ahluwalia
Planning Commission Deputy Chairman Montek Singh Ahluwalia on Tuesday said that the poor monsoon will adversely impact farm production and trim economic growth.
New Delhi: Planning Commission Deputy
Chairman Montek Singh Ahluwalia on Tuesday said that the poor
monsoon will adversely impact farm production and trim
"The existence of drought by itself can lead to some
shaving down of the growth projections," he said, while
talking to reporters.
The impact, however, will not be much on gross
domestic product (GDP) as agriculture production constitutes
less than 20 percent of the economy.
On the impact of decline in farm output on economic
growth, he said, "If you have decline in farm production, one
fifth of that percentage would be knocked off from the
projected GDP growth rate. Obviously, there would be some
effect but not very large."
Pointing out that Kharif output (summer crop) will suffer
on account of the poor monsoon, Ahluwalia said there would be
no impact on Rabi (winter crop).
"The negative impact (of drought) will not be on the
country as a whole, but in some affected parts. No doubt that
the (farm) output of some states will fall and there will be
some distress," he added.
Ahluwalia further said that now it would be too early to
make an assessment about growth for the entire country.