BackIndia could be the largest beneficiary: JPMorgan CEO explains why as companies look options beyond China
JPMorgan CEO for Asia Pacific, Filippo Gori, believes that India could be one of the fastest-growing markets for the bank in the region next year, along with Australia and Japan.
PremiumIn the Asia Pacific region, JPMorgan is poised to witness robust growth in India, Australia, and Japan next year, according to a high-ranking executive from the Wall Street bank.
Filippo Gori, the CEO of JPMorgan for Asia Pacific, highlighted the growing enthusiasm for the "China plus one" approach among businesses. He emphasised that India, among other nations, stands to reap substantial benefits from this strategy, potentially emerging as the primary beneficiary.
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Gori pointed out that India's substantial scale positions it favourably to absorb a significant portion of the supply chain currently sought after by global companies. This insight was shared during an interview with Reuters 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% 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.
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"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 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 enquiry and activity is picking up in India is substantial," Gori said.
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Over the past year, JPMorgan's investment banking team in India has witnessed notable expansion, with the addition of two seasoned managing directors.
Furthermore, the bank has achieved substantial growth within its commercial banking division, catering to mid-sized enterprises, during the last five years.
Simultaneously, its corporate centre operations, responsible for offshore activities, have seen an increase in workforce from 35,000 in 2018 to an impressive 50,000.
(With Reuters inputs)
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