Structure of commodity futures market in India

The Indian commodity market has evolved in a very advanced way during the past years. The commodity futures market in its new electronic version comprises three national-level exchanges and 19 commodity-specific commodity exchanges. The national exchanges operating in the Indian commodity futures market are the Multi-Commodity Exchange of India (MCX), National Commodity and Derivative Exchange of India (NCDEX) and National Multi Commodity Exchange of India (NMCE).

The Indian commodity market is widely traded market which involves trading of metals, energy, agricultural products etc. The Indian commodity market has noticed a great growth even when the international market wasn't doing well, globally. Investors from India have made great profits in the commodities through stock option tips during recent times.

Innovation coupled with modern and successful financial market environment has played a major role in the market rapid growth, which will eventually see India becoming a game changer in major commodities on the strength of its large production and consumption.

In addition to futures trading, the numbers of Indians who have less knowledge of how to invest in share market are looking at commodities as part of their investment portfolio is fast reaching critical mass, as gold demonstrates. Add to that a state-of-the-art infrastructure for trading and the availability of trained personnel, and you have a ready market for businesses wishing to hedge their risks as the markets become more and more globalized on account of the removal of trade barriers worldwide.