After a year of solid growth, India’s exchange traded funds (ETFs) appear poised to continue giving investors opportunities after a spate of positive reports from several sectors.
- Despite the rising input costs, manufacturing activity in India was up in December by new order flows. The seasonally adjusted HSBC Purchasing Managers’ Index, prepared by Markit, rose to 55.6 in December from 53.0 in November, according to the survey, reports Abrhajit Gangopadhyay for The Wall Street Journal. A figure above 50 indicates expansion and December’s result reflects growth through the past nine months.
- The accelerated growth rate may allow policymakers to withdraw the measures that were implemented for emergency circumstances when the global economy fell. Kartik Goyal for Bloomberg reports that as exports rebounded, the government stimulus renewed the domestic demand for consumer goods. [What else is stoking India’s growth?]
- India’s economic growth rate may quicken so much that it may exceed that of China within five years. The growth could quicken to 10% within a few years, experts suggest. Kartik Goyal for Bloomberg reports that the young population in India will help increase the savings rate to more than 40% of their GDP. [How other BRIC economies are stacking up.]
- Reports say that India is on target for 8% growth in fiscal 2011, and the economy is forecast to have growth between 7% and 7.5% in the fiscal year ending mid-March, reports Reuters.
For more stories about India, visit our India category.
- PowerShares India (NYSEArca: PIN): up 79.7% in 2009
- WisdomTree India Earnings (NYSEArca: EPI): up 94.4% in 2009
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.