Union Finance Minister Nirmala Sitharaman on Monday flagged concerns over possible headwinds in domestic consumption this year, due to the impact of El Niño which is likely to adversely affect agricultural income and productivity.

How this affects you

The potential decline in agricultural income due to El Niño and fertilizer scarcity could reduce domestic consumption in India, posing a challenge to the country's economic stability despite existing food buffer stocks. This could lead to a slowdown in rural economic activity.