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Friday, January 25, 2013

Commodity Trading Account - Overview


Commodity markets are markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges in which they are bought and sold in standardized contracts. One can trade these commodities by having commodity trading account.
Indian commodity market consists of both the retail and the wholesale market in the country. The commodity market in India facilitates multi commodity exchange within and outside the country based on requirements. Commodity trading is one facility that investors can explore for investing their money. The India Commodity market has undergone lots of changes due to the changing global economic scenario; thus throwing up many opportunities in the process.
Look beyond shares, India is growing and so is the commodity market. Just Give a Missed Call to IndianMoney.com on 02261816111  and ask our experts how to invest in commodities!
The wholesale market in India is an important component of the Indian commodity market, traditionally dealing with farmers and manufacturers of goods. However, in the present scenario, their roles have changed to a large extent due to the enormous growth that the economy has witnessed. The lengthy process of wholesalers buying from manufacturers; then selling it to retailers who in turn sold it to consumers does not seem feasible today. An improvement in the transport facility has made the interaction between the retailer and manufacturer easier; the need for a wholesale market is gradually diminishing.
The retail market in India is currently witnessing a boom. The growth in the Indian commodity market is largely attributed to this boom in the retail market. Policy reforms and liberal government policies have ensured that this sector is growing at a good pace. Some of the reasons attributed to the growth of retail sector in India include the large population of the country who has an increased purchasing power in their hand. Another factor is the heavy inflow of foreign direct investment in this sector. More than 80% of the retail industry in the country is concentrated in large cities.
Despite having a robust economy, India's share in the global commodity market is not as big as estimated. Except gold, the share in other sectors of the commodity market is not very significant. India accounts for 3% of the global oil demands and 2% of global copper demands. In agriculture India's contribution to international trade volume is rather less compared to the huge production base available. Various infrastructure development projects that are being undertaken in India are being seen as a key growth driver in the coming days.
Just Give a Missed Call to IndianMoney.com on 02261816111 and learn more about commodity investments!



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