Stock markets in India

Emerging Asia: This links with WJEC A2 Geography Theme India. 1.2 How and why is the economy changing ? Factors affecting the growth of financial industries

India: The big picture
Measure of development Population Population growth rate GDP GDP per capita GDP growth Land area Unemployment Internet users India 1.1 billion 1.38% $ 3.161 trillion $ 3.300 7.6% 2,937,190 sq km 9.9% 50.6 million

Random Commercial facts
Are these points significant to a consideration of Indian commerce and trade? If so, why?
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Nokia have 78% of the mobile handset market in India 20 million Indians live in countries other than India 17,000 Indian citizens attend British universities each year Currently there are 9 million university students in India A considerable proportion of India’s budget for scientific research is spent on defence and military applications India is in the top 14 markets for pharmaceutical products such as medical drugs and its market position is rising.

India Stock markets

India's stock markets have been on the rise since May 2004. The benchmark Bombay Stock Exchange (BSE) index, the Sensex, has shot up by over 100% to cross 9,000 points for the first time in its history. Buyers, like the aggressive foreign institutional investors who have pumped in more than $10bn this calendar year, are excited about India's growing economic strength.

India Stock markets

Others are convinced that the economy is fundamentally strong They believe that the country's financial markets are more mature than those of other emerging economies.

India Stock markets

Many believe that the Sensex is proof of India's economic strength. Most global reports have indicated that the Indian economy will be larger than the developed ones, except China, in the next few decades.

India Stock markets 4

But this logic falls flat when one realises that, unlike the Dow or Footsie, less than 5% of Indian companies are listed on Indian stock exchanges. A better indication of the health of India's economy would be the collective movement of the 2,500 shares that are regularly traded, rather than the Sensex.

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