Commodities - India

India

The nominal value in the Commodities market in India is forecasted to reach US$998.30bn by 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 1.00%, resulting in a projected total amount of US$1,039.00bn by 2028.
The average price per contract in the Commodities market in India stands at US$0.01 in 2024.
When compared globally, it is noted that the highest nominal value is achieved the in the United States (US$45,690.00bn in 2024).
In the Commodities market in India, the number of contracts is expected to reach 181,800.00k by 2028.
India's Commodities market is seeing a surge in trading volumes as investors seek diversification and hedging opportunities in uncertain economic conditions.

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Analyst Opinion

The Commodities market in India has been experiencing a notable shift in recent years.

Customer preferences: Customers in India have shown a growing interest in investing in Commodities as a way to diversify their portfolios and hedge against market volatility. The ease of access to trading platforms and increasing financial literacy among investors have contributed to this trend.

Trends in the market: One of the key trends in the Indian Commodities market is the increasing participation of retail investors. This trend can be attributed to the democratization of trading through online platforms, which has made it easier for individuals to enter the market. Additionally, the introduction of new and innovative financial products has also attracted retail investors looking for alternative investment opportunities.

Local special circumstances: In India, the agricultural sector plays a significant role in the Commodities market. Factors such as monsoon patterns, government policies, and global demand for agricultural products can have a direct impact on commodity prices. As a result, market participants closely monitor these factors to make informed trading decisions.

Underlying macroeconomic factors: The economic growth of India, along with its increasing integration into the global economy, has had a profound impact on the Commodities market. As the country continues to urbanize and industrialize, the demand for commodities such as energy, metals, and agricultural products is expected to rise. Additionally, government initiatives to boost infrastructure development and manufacturing further drive the demand for commodities in the market.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.