Why the monsoon is so important for the Indian economy

The south-west monsoon arrived in Kerala on Tuesday, three days before it normally lands, in line with this year’s forecast. The monsoon accounts for over 70% of the country’s annual rainfall and has an enormous impact on the Indian economy.
The south-west monsoon irrigates over half of India’s crop land. Its arrival marks the beginning of the cultivation of rain-fed kharif crops which are heavily dependent on the monsoon—the quantity of rainfall determines agricultural production. Early showers will help farmers start planting of major crops such as rice, soybeans, cotton and pulses. With farmers reeling under stress due to low crop prices, normal rainfall is expected to help revive the sector and alleviate rural distress.
India is primarily an agrarian economy— agriculture contributes 15% of India’s gross domestic product (GDP). Past data has indicated positive correlation between actual rainfall and the growth rate of agriculture GDP. Normal rains will help the economy, which is showing signs of recovery after slowing last year due to demonetization and the lingering impact of GST imposition. It will not only boost agricultural production but increase consumer demand, which will help keep inflation in check.