India is facing a compounding set of economic pressures as a prolonged dry spell threatens to worsen energy and currency challenges.
The country's central bank and policymakers are now under heightened scrutiny as the weather outlook adds to existing strains from rising fuel costs and agricultural disruptions.
The Reserve Bank of India (RBI) has already signaled tighter monetary conditions in response to inflationary pressures.
With below-average rainfall expected to persist, the risk of higher energy demand and lower agricultural output could force further policy adjustments.
This has already led to a shift in investor sentiment, with shares of state-run banks falling as Treasury yields climbed to a two-year high.
The situation reflects a broader struggle for India's economy, which is balancing growth ambitions with the need to manage inflation and external vulnerabilities.