Reserve Bank of India Governor Sanjay Malhotra on Friday cautioned that a projected deficiency in the south-west monsoon could impact rural demand and private consumption, even as various government initiatives are expected to cushion the effect.Speaking at the post-monetary policy press conference, Malhotra said consumption trends have remained healthy so far but acknowledged that a weaker monsoon could affect demand in rural areas.“Rural demand, yes; private consumption, yes. Some impact will be there,” the governor said while responding to a question on the likely impact of deficient rainfall, PTI quoted.The RBI chief said the projected shortfall in monsoon rainfall could have implications for agricultural production and spending in the countryside.“Additionally, the projected deficiency in the south-west monsoon will have implications for agricultural production and rural demand. However, programmes and initiatives for crop diversification, water harvesting and conservation, climate-resilient practices and short-duration crops, among others, are expected to mitigate the impact,” he said.Energy prices, supply disruptions pose growth risksMalhotra also highlighted broader risks from rising energy costs and supply-chain disruptions, warning that prolonged pressures could weigh on economic activity.“Going ahead, the rise in prices of energy and other inputs, coupled with supply disruptions, is likely to weigh on economic activity,” he said.The governor added that the extent of the impact would depend on how long the conflict-driven disruptions persist and how quickly global supply chains normalise.“The full impact, however, will depend on the duration of the conflict, the time taken for normalisation of supply chains and the burden-sharing approach among the stakeholders,” Malhotra said.The RBI noted that while diversification of imports in affected commodities could improve supplies, it may also lead to higher costs.RBI cuts FY27 growth forecastAgainst the backdrop of uncertainty stemming from the West Asia crisis and other downside risks, the central bank lowered its GDP growth projection for FY27 by 0.30 percentage points to 6.6% from the earlier estimate of 6.9%.The RBI has projected GDP growth of 6.6% for the first quarter of FY27, 6.3% for the second quarter, 6.5% for the third quarter and 6.8% for the fourth quarter.“Prolonged global supply chain disruptions, volatility in global financial markets, and weather-related shocks continue to pose downside risks to the domestic growth outlook,” the RBI governor said.