Monsoon Impact in India

It is quiet common that we hear news about monsoon every now and then. To understand it better, the following picture may be of some use.



As you can see, 'Monsoon Waves' keep travelling from southern region to the Western region. A Normal Monsoon is one wherein the rainfall is around predicted time for expected quantity. And no one can influnce monsoon. It is Nature's Gift, but has profound effect on economy in general.

For instance, a good rainfall would trigger need demand for agriculture like seeds, tractors, fertilizers etc. And the resultant crop would leave more money in the farmers hand ( remember 70% of Indian land is in the hand of farmers) who go on to consume more like good food, good house etc. As a result all those companies which supply goods / materials / finished products are benefited with higher sales and higher profits.

Failure of monsoon would lead to cascading problems like, poor farmer, low food production, higher food cost, depressed demand for consumable items including white goods etc.

Hence the cyclical effect of monsoon is what is being feared off in an economy. Getting a Normal Monsoon takes care of half the job of having a good financial year. We hope so in the days to come.