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
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.