PLP Market Review

For a more comprehensive review each month and added research data on the markets delivered FREE to your Inbox, subscribe to PLP Market News using the handy form on the left.

India is one of the two major up and coming economic superstars. The other is China. The population of India was estimated at just over one billion people in July of 2006. This makes the country the world’s largest democracy. In the next generation or two India has the potential to become one of the world’s richest countries.

India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for half of India's output with less than one quarter of its labor force. Breaking down the economy 18.6% is agriculture, 27.6% is industry and 53.8% are the service industries. Service industries include computer programmers and consultants, bank workers and other jobs that support general industry. The major products made in India are textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery. These would be the areas ripe for long term investment.

One of the best ways to invest directly in Indian companies is to purchase American Depository Receipts (ADR’s). They trade just like normal stocks on the NYSE and the NASDAQ. The only other way is to set up a brokerage account with an Indian firm and purchase stocks directly on the Indian Stock Exchanges. This is complicated and you must take care of your own currency translation and tax consequences. However, by purchasing ADR’s these issues are taken care of for you.

One of the best ways to stay in touch with world economic events is the Wall Street Journal. Subscribe now to The Wall Street Journal and get up to 8 weeks FREE One good trade can easily pay for your subscription.