Mumbai:

India could be among the three fastest growing markets for JPMorgan in the Asia Pacific region next year, alongside Australia and Japan, said a top official at the Wall Street bank.

“People are starting to get excited about the whole China plus one element and while other countries have benefitted, India could be the largest beneficiary,” said Filippo Gori, JPMorgan’s CEO for Asia Pacific told Reuters, referring to a strategy for businesses diversifying supply chains beyond China.

This is because India has the scale to absorb part of the supply chain that many companies around the world are looking to move, he said in an interview in Mumbai.

Global corporations like Apple Inc have stepped up production out of India while others like Tesla are in discussions to begin manufacturing in the country.

Asia’s third largest economy is seen growing 6.5 percent in the financial year ending March 31, 2024 – the fastest among major economies – and is trying to attract global corporations, including by offering tax and other incentives.

“It seems to me that the one component that is missing (in India) is more organized infrastructure, which is more scattered and less uniform than in China,” said Filippo Gori, who sees low-end manufacturing moving out of China but not high-end manufacturing yet.

Deal volume for JPMorgan, across mergers and acquisitions, equity and debt fundraising, has been weak across the region this year and India has not been an exception despite the excitement.

“But the level at which inquiry and activity is picking up in India is substantial,” Filippo Gori said.

JPMorgan has expanded its investment banking team in India, adding two senior managing directors in the last 12 months. It has also grown its commercial banking division, which is focused on mid-sized companies, over the last five years. 

Alongside, it has grown its corporate center business, which handles offshoring-related work, to a workforce of 50,000 now from 35,000 in 2018.

Commenting on the impact of the slowdown in China and flux in its markets, Gori said the bank had not seen a sharp slowdown in business volumes in the market yet.

“I think we need to distinguish between the headlines and the day-to-day business because China has actually been exceptionally resilient.”

The bank’s primary client base is international companies operating offshore in China and that business has not been impacted by geopolitics, Gori said.

“I will not rule out that there could be activity coming out of China because clearly with an economy that is going through restructuring, some dealmaking activity could come up.”

Prime Minister Narendra Modi digitally addresses an event in New Delhi on August 19, 2023.
| Photo Credit: PTI

Prime Minister Narendra Modi asserted on August 19 that India’s economy is shining as a beacon of hope in these challenging times.

“With robust growth and resilient spirit, the future looks promising. Let us keep this momentum and ensure prosperity for 140 crore Indians,” he said on X, reacting to news portal Moneycontrol’s ‘Bullish on India’ campaign.

The portal, which specialises in reporting on markets and financial sector, had posted on X that the country’s economy has not just withstood challenges, but thrived setting the stage for optimism.

The ‘Bullish on India’ campaign showcases India’s economic resilience and growth potential in various critical sectors, it said.

It aims to analyse the key drivers of India’s economic growth while fostering awareness about the unparalleled potential the nation offers at a time of a global economic slowdown, the portal said in a separate statement.

“With detailed analysis of macroeconomic factors such as manufacturing, demography, economy, markets and India’s rising stand in the global leadership, ‘Bullish on India’ has been presented as a data backed campaign that underlines India’s resilient economic growth,” it said.

The campaign seeks to analyse key drivers of India’s economic growth while fostering awareness about the “unparalleled potential” the nation offers at a time of a global economic slowdown, it added.

“There are various adversities that have shaken economies worldwide in the past few years. However, India is standing tall, retaining its stature as the ‘world’s fastest-growing major economy’,” it said, noting that the country is set to become the third largest economy in the coming years.