REFORMING THE COMMODITIES MARKET IN INDIA

The newly elected government seems to be going in the right direction. Indicating that this is the most literate cabinet India ever have. Last year Mr Chiddambaram proposed a CTT on all commodities contract, that could have been disaster for the commodities market if the same has been introduced. The exchange traded commodity market is still in its juvenile stage .

Commodities market in India need to develop a lot comparing to the other markets of the world. Current FM has shown indications that he will not introduce the CTT in the budget, this will cherish all the commodities traders and encourage the investors to focus on the commodities too as a investment destination.

Even the most developed country of the world have not imposed commodity tax.