Drought and Indian Economy

Drought and Indian Economy

Posted on Posted in Economy, News

The water issue is a big issue, from the rural to the urban areas. The drought in North and West Indian states and the wider water management issues presents a huge challenge to the economy, as the agricultural sector – a major contributor to the GDP that employs the most people in these states – is hit. Along with its impact on households, this also leads to water shortages for sectors including manufacturing and results in a strain on urban economies.

High temperatures and a crippling shortage of rainfall in India is forcing schools to close and communities to ration drinking water. Businesses were also affected. Factories were closed, power supplies were down and roads across the region became waterlogged, limiting the movement of goods and employees.

Drought pushes Indians further into poverty. Drought prevents many farmers from being able to repay their loans. Farmer suicides have been widely documented in India, and the drought is one factor that drives them. The situation is worsening every day.

India is deploying trains for water supply
Water Trains to Latur
Water Trains to Latur

India is deploying trains loaded with tanks of water as it tries to alleviate drought in parched western areas of the country. The first water train, with 10 tank cars each holding 54,000 litres of water,reached Latur earlier this week. The officials said that the railways will continue to run the trains until the water shortage eases.

Farm sector adapts to low rainfall

The share of agriculture in the overall economy may have fallen, but the proportion of the non-crop sector in the total farm gross domestic product (GDP) has gone up. In the second quarter of 2015-16, despite two consecutive years of deficient rains, farm growth was positive, owing to greater production in the livestock, forestry and fisheries sectors. It means, drought or no drought, farm sector adapts to low rainfall. The south-west monsoon in 2015 was 86 per cent of the long period average, which made 2014 and 2015 as the fourth case of two consecutive all-India deficient monsoon years in the last 115 years.

After two droughts, Meteorological Department predicts super monsoon this time
IMD predicts Super Mansoon this year
IMD predicts Super Mansoon this year

India Meteorological Department (IMD) says that monsoon would be “above normal” this year. They announced that rainfall would be 106 per cent of the Long Period Average (LPA) assessed from 1951-2000. India’s foodgrain production declined from 2013-14’s record 265.04 mn tones to 252.02 mn tonnes in 2014-15 (July-June), due to poor monsoon. As per IMD forecast, definitely agriculture production will be better in 2016-17.

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