15th April 2025
India Projects Above-Average Monsoon, Boosting Economic Outlook
India forecasts above-average monsoon rainfall for the second consecutive year, expecting 105% of the long-term average, which is anticipated to enhance agricultural output and support economic growth.
The favourable monsoon outlook, supported by the absence of El Niño conditions, is expected to stabilise food prices and help control inflation, which is currently at a five-year low of 3.34%.
Good rainfall would benefit nearly half of India's farmland that relies on monsoon rains due to the lack of irrigation, potentially leading to increased exports of rice, onions, and sugar.
The improved agricultural prospects may also reduce India's dependence on edible oil imports and support further interest rate reductions by the Reserve Bank of India.
In 2024, India received 107.6% of average rainfall, enabling the country to ease restrictions on rice and onion exports and export a limited amount of sugar.
As the world's leading rice and onion exporter and second-largest sugar producer, India stands to benefit significantly from favourable monsoon conditions.
Stock market update
U.S. stock futures showed minimal movement following a positive start to the week, buoyed by President Trump's decision to exempt smartphones and computers from recent tariffs on China.
Nasdaq futures increased slightly by 0.1%, while S&P 500 and Dow Jones futures remained nearly flat.
Bitcoin rose 1% to approximately $85,500, and 10-year Treasury yields edged towards 4.4%, reflecting cautious investor sentiment.
Boeing shares fell 3.5% premarket after reports that China instructed its airlines to halt new jet deliveries and stop U.S. parts purchases, citing high costs due to retaliatory tariffs.
Conversely, Netflix stock rose over 2% after announcing ambitious goals to double revenue by 2030 and achieve a $1 trillion market cap, ahead of its upcoming earnings report.
Bank of America reported strong Q1 results, with earnings per share of $0.90 on $27.37 billion in revenue, surpassing expectations and boosting investor confidence.
News written by Zhangir Meshitbek | Published by Zhangir Zhangaskin
