The Indian economy relies heavily on the Southwest monsoon since the country gets 75% of its rainfall during this period. A good or bad monsoon season can have a direct impact on the rural income and overall economic growth of the country. Agricultural contributions account for almost 20% of the country’s GDP, while nearly half of India’s population depends on farm-based livelihood. However, historical trends suggest that the equity market does not react linearly to the outcome of the monsoon, and a tepid forecast tends to work well for the IMD.
