IMD's monsoon forecast: Too early for markets to run into rough weather

A sub-par monsoon can has the potential to fan inflation and impact the country's economic outlook

Indian Metrological Department (IMD) has predicted a normal monsoon season in 2017 (June - September) with a fair distribution across the country. Monsoon 2017, according to the government forecaster, will be qualitatively 96 per cent of long-period average (LPA), with a model error of plus or minus five per cent.

Private weather forecaster, Skymet, had recently predicted below-normal monsoon at 95% of the long-period average (LPA) and cautioned against sever heatwave conditions in northern India.

These forecasts assume importance as around 70% of India's rainfall happens in this