The probability is improving for a La Nina event leading to a good monsoon in India which could provide a major boost to consumption, investment and GDP growth, says a Deutsche Bank report.
According to the global financial services firm, this year could throw up positive surprises for the country. “In order to alleviate rural distress, India needs bountiful rainfall, with proper spatial and temporal distribution. Consequently, a La Nina event could provide a major boost to consumption, investment and GDP growth,” Deutsche Bank said in a research note.
According to the report, an analysis of over 30 year data indicates strong positive correlation between La Nina and India’s key macro/rural indicators. As per the analysis, average annual rainfall in La Nina years has been 5.3 per cent above long term average and rural economy also posted strong growth during these years.
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