The global recovery is most pronounced in that of the emerging economies and their related exchange traded funds (ETFs). Surging to an impressive two-year high, India’s economic growth pushed ahead in the second quarter as the services and manufacturing sectors came back to life, but the economy could be doing better.

India’s economy expanded 8.8% in the second quarter year-over-year, its fastest growth rate since 2007, reports Harsh Joshi for The Wall Street Journal. While most of the growth came from services and manufacturing, the agricultural sector only grew by 2.8% and it’s slowing from there. India’s growth would have reached 9.9% if the low growth from farming was excluded. [Chindia: Two Great Economies in One ETF.]

The migration of workers to urban areas with industrial factories, the expansion of cities into farmland and the depletion of water levels from urban growth are all affecting the agricultural sector in India. Additionally, the government is allocating fewer resources to the improvement of agricultural production. [Infrastructure ETF for India’s Economy.]

Inflation in the second quarter hit 10.6%, according to ABC News. Economists are also concerned that consumer demand remains narrow and that industrial production and credit growth may be constrained by capital spending.

For more information on India, visit our India category. Although the ETFs below have minimal exposure to the agriculture sector, keep in mind that their growth could still be constrained by the sector’s weakness. It’s worth pointing out that even with India’s agricultural weakness, the economy is still enjoying strong growth that many nations would love to have.

  • PowerShares India (NYSEArca: PIN)
  • WisdomTree India Earnings (NYSEArca: EPI)
  • iShares S&P India Nifty 50 Index (NYSEArca: INDY)
  • EG Shares Indxx India Small Cap ETF (NYSEArca: SCIN)

Max Chen contributed to this article.

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.