Mumbai, July 10 -- A weak southwest monsoon could weigh on India's rural economy in the coming months by reducing farm incomes, pushing up inflation and slowing rural demand, according to a report by S&P Global Ratings.

The report said sectors such as agriculture, agrochemicals, tractors, two-wheelers and microfinance are likely to be the most affected if rainfall remains below normal.

"India's rural economy faces a dual threat: An unusually dry southwest monsoon and higher agro-input costs driven by geopolitical conflict. The agricultural sector is the most exposed, in S&P Global Ratings' view," the report said.

It said lower crop yields could reduce farmers' incomes, leading to higher food prices and weaker demand for rural-focused p...