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India's economic growth to slow to 6.8% in FY27 amid West Asia crisis, El Nino impact: Re

India Ratings and Research has raised its FY27 GDP growth forecast to 6.8% from 6.7%, but expects growth to slow from 7.6% in FY26 amid inflation, rupee weakness and El Nino risks.

India's economic growth to slow to 6.8% in FY27 amid West Asia crisis, El Nino impact: Re

Union Agriculture Minister Shivraj Singh Chouhan stated on Tuesday that the impact of El Nino on this year's kharif production is unlikely to be significant. He noted that the gap in sowing has narrowed and rainfall has been adequate across most parts of the country. Chouhan emphasized that there is no major impact of El Nino, except in some isolated areas.

He affirmed that overall, the situation remains positive and the government is continuously monitoring the condition. The shortfall in kharif sowing, which stood at 11% last week, is expected to decrease further. Chouhan also mentioned that deficient rainfall in certain regions is not expected to affect the total kharif output at the moment.

Karnataka and Telangana are currently experiencing water shortages, but any impact is projected to be limited to specific areas. As of August 14, kharif crops were sown over 1,016.57 lakh hectares, which is 2% less than the area cultivated in the same period last year. The sown area was 92% of the seasonal average. According to India Meteorological Department data, rainfall was 12% below normal for the country as of August 12, with a 26% deficit in eastern and northeastern India, 19% in the southern peninsula, and 11% in the northwest.

The number of districts vulnerable to rainfall-related issues has dropped from 262 to around 100, according to Chouhan. The minister also announced that the government has prepared draft versions of the Seeds Bill and the Pesticides Management Bill, which are set to be introduced in Parliament during the next session as part of agriculture sector reforms.

Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Also reported by 1 other outlet

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