NEW DELHI — Bullish on India amid robust growth and positive investment sentiment, American financial services major JPMorgan Chase & Co intends to keep growing its operations in the country.
According to JPMorgan CEO Jamie Dimon, there is a substantial opportunity for the fastest-growing economy in the world from the shift in supply chains from China, though the transition will take several years.
Meanwhile, the country needs to further build its manufacturing ecosystem and ensure scalability to gain from the "China Plus One" strategy.
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Sjoerd Leenart, JPMorgan's Asia Pacific CEO, was quoted as saying that India is still firmly in the top three, possibly top two in Asia, together with Japan.
There has been a flurry of activity that makes India a “super exciting place to have a large team on the ground”.
The US banking giant aims to expand its businesses covering clients, as well as resources that provide global support to the firm.
According to the government, the industrial and service sectors of the Indian economy are performing well, backed by brisk domestic demand and partially by tentative external demand. This can benefit India's manufacturing firms as part of the China Plus One strategy.
As per a latest Finance Ministry report, factors like the ongoing recovery in the hotel and tourism industry, increased credit flow to transport and real estate segments, policy support, and robust investments in physical and digital infrastructure and logistics will help the services sector.
Meanwhile, S&P Global Ratings has retained India's growth forecast at 6.8 per cent for the fiscal 2024-25, while reducing China's economic growth by 0.2 per cent to 4.6 per cent in the calendar year 2024.
The rating agency also retained India's growth forecast for FY 2025-26 at 6.9 per cent. Meanwhile, it further reduced China's GDP growth to 4.3 per cent in the calendar year 2025.
The July budget confirmed that the government remains committed to fiscal consolidation and to keeping the focus of public expenditure on infrastructure.
In Budget 2024-25, Finance Minister Nirmala Sitharaman allocated a total of INR 11.11 lakh crore for capital expenditure. The central government also has set a target to bring down the fiscal deficit below 4.5 percent of GDP by FY 2025-26.