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Sinha says drought to affect economy

Finance Minister Yashwant Sinha said on Wednesday a drought in some parts of the country would have an "adverse impact" on the economy.

"This year already food grain production is estimated to go down by something like 12 million tonnes. It (the drought) will have some adverse impact on growth but what exactly the impact will be we will have to see," Sinha told reporters.

India's GDP growth was estimated to have slowed to 6.0 per cent in 2000-01 after expanding by 6.4 per cent in 1999-00. Finance ministry officials are hoping growth will pick up to 6.5 per cent in the current financial year, helped by normal rainfall.

Last year, poor rainfall in the western and central parts of the country affected the livelihood of millions of people and killed thousands of cattle.

The southwest monsoon rains, which normally begin in June and last until the end of September, provide 80 per cent of the country's total rainfall. Weather officials said on Wednesday the monsoon had broken over Kerala seven days ahead of schedule.

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