India’s economy and related exchange traded funds (ETFs) see some solid growth, but the agricultural sector isn’t as fortunate. Also, trade talks with Japan may set up a potentially lucrative partnership in the years to come.
C Rangarajan, the Prime Minister’s Economic Advisory Committee chairman, said the economy will expand 7% to 7.75% for the current fiscal year, as stated in sifybusiness. However, Rangarajan projects a fall of 1% to 2% in their agricultural sector because of drought and floods. The chairman also noted that “agricultural growth rate should not fall below four percent for food security, as 60 percent of the population are in rural areas.” [Our guide to the BRIC countries.]
Prime Minister Dr. Manmohan Singh, stated that India and Japan are expediting negotiations on the Comprehensive Economic Partnership Agreement to augment economic relations between the two countries, according to The Hindu Business Line.
Dr. Singh believes the trade pact will allow greater Japanese investments into India and an “expansion of cooperation in the areas of urban infrastructure, high technology and renewable and energy-efficient technologies.” [India ETFs: too much too soon?]
The two countries also agreed on accelerating the Dedicated Freight Corridor project between Mumbai and Delhi, and they will create a Japan External Trade Organization Chennai office to channel investments by small- and medium-sized Japanese enterprises into India.
For more information on India, visit our India category.
- PowerShares India (NYSEArca: PIN): up 80.4% year-to-date
- WisdomTree India Earnings (NYSEArca: EPI): up 95.2% year-to-date
Max Chen contributed to this article.
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