Overview of Indian economy
Commodity trading in India has been encouraged by the government.
Multi Commodity Exchange (MCX)
National Multi-Commodity Exchange (NMCE)
National Commodity Derivatives Exchange (NCDE)
The commodity market has been established with a view of future trading. The Indian commodity market caters for both wholesale and retail consumers. However, while the retail market is expanding the wholesale market is gradually diminishing. This is simply to the fact that the improvements made in the transport sector have increased the interaction between the manufacturers and retail consumers.
Even though India is experiencing a huge boost in the economy, it does not have a big share in the world market. For instance its agricultural commodity contribution in the world market is low compared to the huge production base.
How Commodity can be an opportunity to enhance your financial front?
Most people wonder how they can use a Commodity to enhance their financial front. There are several ways to do these and they are as follows:
It is important to watch the trading trends of other commodities other than the ones that you have invested in. This will help you to note which commodities are doing well in the national exchange. By understanding the trading trends of such commodities, the consumer can be able to invest in these items and make a maximum profit.
Another way that one can enhance their financial front is by mitigating the supply risk by disconnecting from the market. This will help the consumer to avoid the volatility of the commodity where there may be resource scarcity.
It is also important to prepare for any inevitability. This is due to the fact that the market is always fluctuating thus affecting the commodity prices. You can do this through competitive positioning where you can anticipate future scenarios.
How MCX India works
Multi Commodity Exchange is located in Mumbai the financial capital of India. It has a total of about 10,000 trading terminals across 500 cities in the country. The MCX is an independent commodity market which has a lot of commodities. The MCX has to enable the SMEs, the corporate sector to hedge against commodity price volatility. To be able to fully understand the workings of the MCX you can visit the advisory company and learn all there is to MCX.
Role of MCX India and Commodity Market over Indian economy
The MCX role has expanded over the years as it has partnered with exchanges from across the world giving it clients a bigger platform over which they can improve their portfolio. It has also allowed foreign investors to directly invest in the country increasing the country’s revenue. This has helped in the growth of the domestic market. These improvements have led to the growth of various sectors in the country for instance, the transport sector.
The Multi Commodity Exchange has social responsibilities as well. This includes, Public Private Partnership and it have partnered with other institutions. By partnering with non-profits it helps bring the people at the grassroots an avenue where they can learn about investing and also be able to invest the little money they have.
The Commodity market has given investors an avenue where people looking to explore can find the items they want to invest in. It also diversifies from traditional trading options for those wishing to invest.
In conclusion, it is important to realize that commodity trading in India is fairly young and therefore requires aggressive growth. The government should adopt liberal policies that will facilitate the growth of Indian economy. It is also important to start infrastructure development to help the MCX and Commodity market to gain valuable ground in international trading.