Economics

Water Could Make or Break Bets on China-Beating India Growth

  • Fate of monsoon in focus after two poor annual rainy seasons
  • Government outlays on affected areas could boost some stocks

A woman carries a pot filled with water on her head in the village of Shyampura in Tikamgarh, Madhya Pradesh, India, on Feb. 9.

Photographer: Prashanth Vishwanathan/Bloomberg
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Investors betting on India need the rain gods to smile.

The nation’s reservoir levels are three-quarters of the past decade’s average, a sign it can ill-afford a third year of poor rains. Water scarcity could hurt crops, push up prices and sap the economy -- further souring sentiment following a slide in the S&P BSE Sensex.