The deficient monsoon and El Niño could lead to reduced agricultural output, directly affecting rural incomes and demand. This, in turn, may slow down economic recovery in rural areas, which are heavily reliant on agriculture. Additionally, the RBI's decision to raise interest rates could delay private investment recovery, further impacting economic growth. Inflationary pressures, already near the upper limit of the RBI's target range, could exacerbate household spending challenges, particularly for lower-income groups.