IMD's normal monsoon forecast lifts business sentiment

IMD expects 96 per cent of long period average (LPA) in this monsoon season

The monsoon is likely to be just normal at 96 per cent of the Long Period Average (LPA) this year for the second year in a row, the India Meteorological Department (IMD) said on Tuesday, giving rise to expectations of three to four per cent farm gross domestic product (GDP) growth, which would fuel rural demand and ease food inflation. 

However, an assessment of the specific impact of the monsoon on the economy would have to wait a while, as the timing of the monsoon arrival and its distribution would be key, experts said.

The IMD attributed the projection to