Monsoon rains seen normal this year, says economic adviser Arvind Subramanian

India's summer monsoon rains are expected to be normal this year, Chief Economic Adviser Arvind Subramanian said on Thursday.

Monsoon rains are vital for India's farm sector, which accounts for 14 per cent of the $2 trillion economy, as half of the country's farmland lacks irrigation. Weak monsoon rains have cut farm output in the past, stoking inflation.

Subramanian also said inflation is not expected to run up in the medium-term due to the recent unseasonal rains, which have damaged over 10 million hectares (24.7 million acres) of crops.

(Reuters)