Sector and Stock Picks- Agriculture

In India more than 65 per cent or 13.5 crore households live in rural areas. A large population also means a lot of opportunities for companies serving the needs of these individuals. India has a lot of untapped business opportunities in the vast rural domain. For instance, the Indian wireless business has grown the fastest in the world, thanks partly to low penetration levels in the country. Even after many years of high growth, the mobile penetration is still low at less than10 per cent in rural India, thus reflecting the untapped potential.

Over the last one decade (FY 1998-2008), India’s per capita income has more than doubled from $418 to over $1,000. On an average, the per capita income in rural India has grown by 4 per cent annually—or by 50 per cent in ten years. Among key reasons for the latter are the rising commodity prices (Minimum Support Price; MSP for crops), better resource utilization, improving productivity and higher production.

Which are the companies which will directly benefit from the prosperity in the rural sector? Read more to learn about stocks and companies which will grow with rural economic growth.Stocks discussed-Bharti Airtel, State Bank of India, Rallis, Jain Irrigation, Chambal Ferilizer, Hero Honda, Hindustan Unilever.

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Interim Budget 2009 Highlights

Finance Minister of India announced the interim Budget 2009 in Parliament. Mukherjee pointing out that the United Progressive Alliance (UPA) had succeeded in implementing the promises outlined in the Common Minimum Programme (CMP).

“Achieving 7% growth rate on a sustained basis was one of the targets of the UPA,” Mukherjee said. “And the country clocked above 9% growth rate for three consecutive years — FY06, FY and FY08.”

Highlights of 2009 Interim Budget:

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All efforts made to deliver on commitments
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Sustained growth over 9% in last 4 years
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Per capita income grew 7.4% during UPA regime
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Gross domestic savings rate at 37.7%, gross cap formation at 14.2%
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Tax-GDP ratio at 12.5% in 2007-08, close to fiscal correction target
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Domestic investment rate over 39% in FY08
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Growth drivers - agriculture, services, manufacturing, construction
Outlook for food grain production encouraging for coming year
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Exports grew at annual average rate of 26.4% during last 4 years
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Challenges related to capital inflows and global inflation
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We have weathered the crisis, but no room for complacency

Read the complete budget 2009 analysis and highlights at www.stockinvest.in>>>