Just as I wrote about the scorching heat a couple of hours back, there has today been huge storm with heavy downpour compensating for the weeks of abonormal heat. Rains brings with it relief, hope, greenry, and the coolness that is simply enthralling. Rains after so many weeks makes itself an event, more so something that makes one spellbound by the natures fury and natures wonder.
Rains in India are the lifeline for the millions of farmers, and indeed the whole of the economy. Still out of over a billion population, nearly 70% population lives in villages; and out of the total population of India over 50% are still dependent on agriculture for their livelihood. Eventhough, agriculture itself accounts for more than 20% of the GDP, its impact on the economy is huge. This is because it initiates the annual economic cycle. If the monsoons are poor, then agriculture would be poor, leading to decline in purchasing power of nearly 70% of India’s population. This would lead to decline in sales and pressure on the other sectors of the economy.
In contrast, if the rains are good then agriculture produce is good, consequently the demand for consumer goods increases, leading to increase in production in other sectors of the economy. This leads to greater employment in the industrial sector and increased purchasing power for the workers of industrial sector and other persons in the urban areas. All these leads to the spiral of economic expansion and growth.