If there was any doubt as to whether India’s economy and exchange traded funds (ETFs) could sustain the growth of the last year, the early signs are promising. Most notably, exports and auto sales are skyrocketing.
- India’s exports rose for the second straight month in December, with the trend likely to keep up through the first part of 2010, says Nupur Acharya and John Satish Kumar for The Wall Street Journal. [Relations with Japan may help stir more growth in India.]
- As the rupee has strengthened (it’s now at a 15-month high), it’s lured back foreign investors. Foreign funds bought more than $17 billion of local shares last year, besting 2008’s $13 billion, reports Anant Vijay Kala for The Wall Street Journal. [Other reasons India’s economy is surging.]
- Indian car sales rose the most in three years in 2009 as economic growth and cheaper loan rates helped the country withstand a global slump in demand. Vipin V. Nair for Bloomberg reports that December sales surged 40%. The recovery within India’s economy as others falter has automakers focusing on this market, as the size of India’s market is now a palatable size. [How the auto industry is propping up India’s ETF.]
- India’s economy grew 7.9% in the third quarter of 2009, outpacing most estimates. The country’s finance minister said growth for the fiscal year ending March 31 should come close to 8%, as well.
- Despite a drought and high food prices, India isn’t going to need to import wheat or rice. The country’s trade minister expects a good winter crop, which will help prices ease up.
- India’s population is soaring: by 2025, it’s projected to surpass China’s. The demographic changes could bring more eager, bright minds into India’s work force.
For more stories about India, visit our India category.
- PowerShares India (NYSEArca: PIN)
- WisdomTree India Earnings (NYSEArca: EPI)
- iShares S&P India Nifty 50 (Nasdaq: INDY)
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.