The IMD (India Meteorological Department) has predicted above normal rainfall in the monsoon season for 2025. Further, the IMD had ruled out the possibility of any EL Nino effect this year. The private weather forecaster Skymet Weather also mentioned that India is likely to experience a normal monsoon this year.
El Nino is a climate event where ocean temperatures in the Pacific rise, disrupting global weather. In India, it often leads to weak monsoons, droughts, and higher food prices. Its absence in 2025 is a positive sign for stable rains and a stronger economy.
Above-normal monsoon rainfall is a positive sign for India as it supports strong agricultural output, especially in rural areas that depend heavily on rain-fed farming. Good rainfall boosts crop production, increases farmers’ income, and strengthens rural demand, which in turn benefits sectors
Here are the 4 Sectors that can benefit from a good monsoon this year:
1. Agrochemicals
The Agrochemicals sector benefits from a normal monsoon because good rainfall supports healthy crop growth, leading to higher demand for fertilisers, pesticides, herbicides, and other crop protection products. When farmers expect better yields due to sufficient rain, they invest more in agrochemicals to protect and enhance their crops, driving sales and growth in this sector.
2. Auto
The Auto sector, especially manufacturers of tractors and two-wheelers, benefits from a normal monsoon because good rainfall boosts rural incomes through better agricultural output. This increased income encourages farmers and rural consumers to buy more vehicles like tractors for farming and two-wheelers for daily transport, leading to higher sales and growth in the auto sector.
3. FMCG
The FMCG (Fast-Moving Consumer Goods) sector benefits from a normal monsoon as it leads to better agricultural output and higher rural incomes. With more disposable income, rural consumers tend to spend more on everyday items like food, beverages, personal care, and household products, driving sales growth for FMCG companies.
4. NBFC
The NBFC (Non-Banking Financial Companies) sector benefits from a normal monsoon because improved agricultural output and higher rural incomes enhance borrowers’ repayment capacity. This reduces credit risk and encourages more demand for loans in rural areas, for purposes like buying farm equipment, vehicles, or funding small businesses, boosting growth for rural- and agri-focused NBFCs.
Written By Abhishek Das
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