Monsoon has arrived, agri sector looks healthy: CEA V Anantha Nageswaran

CEA Nageswaran said that India is 'well covered' in handling the impact of monsoon on output and prices

Monsoon has arrived "well" in India and the country's agriculture sector looks in good health, Chief Economic Advisor V Anantha Nageswaran said at an event on Thursday. According to news agency Reuters, he said that India is "well covered" in handling the impact of monsoon on output and prices.

According to the Indian Meteorological Department (IMD), the monsoon has arrived in Kerala and the conditions are becoming favourable for further advance of the southwest monsoon over some more parts of the south peninsula and east India and adjoining areas between June 18 and 21.

The southwest monsoon hit India on June 8 with its onset over Kerala against the normal date of June 1. IMD said that a delay in the onset of monsoon over Kerala does not necessarily mean a delay in the monsoon onset over northwest India.

IMD had earlier said that India is expected to get normal rainfall during the southwest monsoon season despite the evolving El Nino conditions.

Citing IMD's forecast on El Nino, Nageswaran said that he hopes India receives the bulk of rain before that.

The CEA added that the private investment in the country has returned and the industry is ramping up the capital expenditure. Moreover, the country's current account deficit (CAD) is expected to be lower than two per cent in 2023-24 (FY24) mainly on the back of falling commodity prices.

He, however, cautioned that further rate hikes by the US Fed and a weaker-than-expected monsoon may pose downward risks to the country's growth.