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

The report cautioned that below-normal rainfall, combined with rising agricultural input costs linked to global geopolitical tensions, could create challenges for rural growth.

"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," ANI reported, citing the report.

Impact on Farm Output and Demand

The report noted that lower rainfall could lead to reduced crop yields, ...