Below-normal monsoon may impact rural demand, ICICI Bank report warns
Below-normal monsoon may impact rural demand, ICICI Bank report warns
IN · Published Sep 29, 2026
• India's manufacturing sector is expected to maintain growth momentum, supported by strong exports and a strengthening investment cycle, according to ICICI Bank Research.
• However, the report highlights concerns over rural demand due to a below-normal monsoon.

Impact & Risks

The below-normal monsoon could negatively affect rural consumption, particularly in sectors reliant on agricultural income, such as FMCG. While urban and export-driven manufacturing sectors are showing resilience, rural areas may face economic challenges. Mining output contracted by 5.6% in August, further highlighting vulnerabilities in certain sectors. The disparity between rural and urban demand could lead to uneven economic recovery.

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