| China’s stock market crash on Monday, which sent equity markets across the globe cracking, has turned investor sentiments negative. A slowdown in China is a global worry, particularly for commodities, as the dragon country consumes about half the world’s metals output and is also the second largest market for oil. However, for India, which is a net importer of commodities, lower prices can be a blessing.
In 2014-15, India’s total commodity imports were $448 billion while exports were $310 billion. Of the total imports, about 13.5 per cent, or $60.4 billion, was from China. With a slowdown in China and a slump in commodity prices, mainly metals, Indian steel and iron ore manufacturers may suffer as their realisations take a knock...............................................Full Article: Source
|