Trends and Prospects of Commodity Markets Trading in India: an Analysis

Trends and Prospects of Commodity Markets Trading in India: An Analysis
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SYNOPSIS

Introduction:
          This project is to analyze the future prospects of commodity market as the Indian Commodity markets and futures trading in the commodity exchanges have great potential to develop as one of the fastest growing centers in the world. India belong an agrarian economy can definitely bolster its commodity trading volumes. Similarly India is also a large producer in various commodities and metals. If we consider consumption aspects of certain commodities, India again will figure as one of the largest consumers of such products. Being one of world's largest agrarian economies, commodities contribution (agricultural produce and other commodities) to the Indian economy said to account for about 50% to India's GDP.
Commodity market is an important constituent of the financial markets of any country. It is the market where a wide range of products, viz., precious metals, base metals, crude oil, energy and soft commodities like palm oil, coffee etc. are traded. It is important to develop a vibrant, active and liquid commodity market. This would help investors hedge their commodity risk, take speculative positions in commodities and exploit arbitrage opportunities in the market.
      Market is a place where buyers and sellers meet to transact a business i.e. for exchange of goods or services for a consideration, which is usually money. Markets are usually and traditionally at a place or location, where buyers and sellers could meet. However, in modern world, buyers and sellers on telephone lines or on Internet can transact the business. Hence, in today's world markets need not Exist in physical form as long as the exchange of goods or services take place for a consideration.   Commodity market is therefore logically a market where commodities or commodity...