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Commodity
Commodities are raw materials and basic goods such as oil, gold, silver, wheat, cotton and copper. One unit is interchangeable with another, so they trade on global markets at a common price.
Why It Matters
Commodity prices feed into the cost of almost everything else in the economy.
In India
India is a major importer of oil and gold and a major exporter of rice, making global commodity prices central to its economy.
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