Bullish on India amid robust growth and positive investment sentiment, American financial services major JPMorgan Chase & Co is keen on further growing its operations in the country. According to JPMorgan CEO Jamie Dimon, there is a huge opportunity for the fastest-growing economy in the world from the shift in supply chains from China, though the transition will take several years.
The country must, however, continue to work on its manufacturing ecosystem and scalability to be able to avail the "China Plus One" strategy.
JPMorgan's Asia Pacific CEO Sjoerd Leenart is quoted by a report saying that India is firmly within the top three, perhaps even the top two in Asia, along with Japan. There has been 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 will support the firm globally.
According to government of India, country's industrial and services sectors were performing well, buoyed by brisk domestic demand and partially by tentative external demand. This can help India's manufacturing firms under its China Plus One strategy.
The latest Finance Ministry report also throws light on factors that would continue to drive the services sector. They include 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.
Meanwhile, S&P Global Ratings has kept the growth forecast for India at 6.8 percent for FY 2024-25, while lowering the same for China to 4.6 percent in the calendar year 2024. The rating agency has also kept the same growth forecast of 6.9 percent for FY 2025-26 for India. Meanwhile, it further downgraded China's GDP growth to 4.3 percent in the calendar year 2025.
July budget reiterated the commitment of the government toward fiscal consolidation and toward keeping focus of public expenditure in the infrastructure domain. So, in her Budget 2024-25 for instance, Finance Minister Nirmala Sitharaman has allocated a total sum of Rs 11.11 lakh crore toward capital expenditure. The central government has also set a target to bring down the fiscal deficit below 4.5 percent of GDP by FY 2025-26.
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