Local demand may be enough to support India’s economy in the next year, while floating their exchange traded funds(ETFs).
Trade Minister Kamal Nath says that the country may announce a trade assistance package for exporters later this year as a global recession threatens this year’s target growth, reports Cherion Thomas for Bloomberg. Exports make up a fifth of India’s economy, and their business has been hurt by slowdowns in the United States and Europe. A plan to inject $4.5 billion into their financial system was passed this weekend.
The Indian economy could bounce back to 9% growth next year on the strength of local demand. Although there is a slowing right now, steps will be taken to target the weak spots. The country’s finance minister signaled interest rates will come down in Asia’s third-largest economy and said he will examine further excise duty cuts to spur consumer spending, reports Cherion Thomas and Kartik Goyal for Bloomberg.
A slowdown of 7.5% through next March is expected.
- PowerShares India (PIN), down 55.4% since March 5 inception
- WisdomTree India Earnings (EPI), down 60.1% since Feb. 26 inception