Mumbai, May 26 -- India's macroeconomic outlook for FY27 could be influenced significantly by monsoon performance, with below-normal rainfall expected to create upward pressure on inflation and affect growth momentum, according to a report by CA Tapan Doshi, smallcase manager and Founder of Thoughtful Investors Research LLP.

The report states that the India Meteorological Department (IMD) has forecast monsoon rainfall at 92 per cent of the Long Period Average (LPA), which is classified as below normal. It notes that this raises concerns around food inflation, rural demand recovery and the overall interest rate outlook.

According to the report, nearly 55 per cent of India's net sown agricultural land is rain-fed, making monsoon patterns ...