New Delhi, July 10: India's better-than-expected monsoon rains are likely to boost Asia's third largest economy as a robust harvest could push up rural incomes and drive demand for manufactured goods, economists said. The weather office said on Wednesday the Southwest monsoon was likely to be normal with rains in July, crucial for crop sowing, expected to be 102 percent of the long-period average.

The monsoon is the lifeline of the Indian economy as the farm sector accounts for 25 per cent of GDP and employs about seven of every 10 people in the country of more than a billion people.

"A good monsoon means a higher income for the farming sector which drives a major chunk of demand," said S D Brahmankar, economist with independent think-tank National Council of Applied Economic Research (NCAER).
Last year, the farm sector shrank due to the country's worst drought in 15 years, dragging down economic growth in 2002/03 (April-March) to 4.3 per cent. The farm sector shrank 3.2 per cent while manufacturing grew 6.1 per cent and services 7.1 per cent. Bureau Report