JPMorgan: India Ranks Among Asia’s Top Three Rapidly Expanding Markets in 2024
In an interview with Reuters, Filippo Gori, the CEO of JPMorgan’s Asia Pacific division, expressed his optimism about India’s potential to be one of the three fastest-growing markets in the Asia Pacific region in 2024. He pointed out that India, along with Australia and Japan, could lead in terms of economic expansion for JPMorgan.
Gori attributed this optimism to the “China plus one” strategy, where businesses diversify their supply chains beyond China. He emphasized that India possesses the scale required to accommodate a portion of the global supply chain that many companies are seeking to relocate. This trend has already been observed with companies like Apple increasing production in India, while Tesla is in discussions to commence manufacturing operations in the country.
India’s economy, ranked as the third-largest in Asia, is expected to grow at a rate of 6.5 percent in the fiscal year ending on March 31, 2024, surpassing other major economies. To attract global corporations, India has been offering incentives such as tax benefits.
Despite the economic excitement, Gori noted that India’s infrastructure is less organized and more scattered compared to China. He predicts that while low-end manufacturing is likely to shift away from China, high-end manufacturing may not follow suit immediately.
Despite a slow year in terms of deal volume across the Asia Pacific region, India has shown substantial inquiry and activity, prompting JPMorgan to expand its investment banking team and its commercial banking division, which focuses on mid-sized companies.
Regarding the slowdown in China and market fluctuations, Gori stated that JPMorgan has not observed a significant decline in business volumes in the Chinese market. The bank primarily serves international companies operating offshore in China, and this aspect of the business has not been substantially impacted by geopolitical factors.
Gori added that China’s ongoing economic restructuring may lead to increased deal-making activity, and JPMorgan remains attentive to potential opportunities arising from this transformation.
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