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Data▼ Bearish for Indian equities
Weakest monsoon since 2015 prompts ICRA to cut FY27 farm growth forecast
The brief
- The 2026 southwest monsoon delivered 87% of the long-period average, the lowest rainfall since 2015
- Weaker farm growth may weigh on Indian agricultural input and rural-consumption companies
- ICRA sees strong credit quality despite macroeconomic headwinds
- India Inc credit quality stays resilient in H1FY27 as agencies flag H2 risks
India’s deficient monsoon and rural distress
The 2026 monsoon ended about 12.6% below the long-period average, the weakest since 2015, with 15 states below normal and 313 of 741 districts deficient or largely deficient. Drought and erratic rain have weighed on fertiliser sales and rice yields, while onion prices nearly doubled amid Maharashtra’s drought.
Friday, 2 October
- Weakest monsoon since 2015 prompts ICRA to cut FY27 farm growth forecast