Since rains in India are mostly during monsoon season any variation during the monsoon affect agriculture and economy of the country. The monsoon is the lifeblood of India's farm dependent economy.
In a good monsoon season production in agriculture increases which leads to the demand for consumer goods so the income of rural people also increases. It helps to reduce poverty and inequality in the society. The monsoon also increases the water in reservoirs and groundwater that will help in irrigation and increases hydropower production. Other economic activities like fishing are also influenced by the amount of rainfall.
If there is a poor monsoon season the demand for consumer goods reduces. It also forces the government to spend more on import of food and also take measure to help the farmers through incentives, Subsidies and sometimes waive the agriculture loans . Government must also take measures to avoid water shortage for the common citizens. It will be a burden to the government and India economy
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