Tag: rain deficit

Industry segments that derive a significant portion of their earnings from rural areas, including auto, FMCG and consumer durables, are getting jittery with the progress of South-West monsoon dipping below the 11 per cent long-period average. Tractor volumes in August, for instance, were soft due to weak monsoon and a delayed festive season. “The intensification of the El Nino phenomenon is the biggest risk to the rural economy and overall GDP growth,” said HSBC Global Research. “Already, we find that real rural wages and non-durables consumption are weakening. As...