India to become JPMorgan’s fastest-growing Asia Pacific market in 2024

“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 organised 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.

JPMorgan boosts investment and commercial teams

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 centre business, which handles offshoring-related work, to a workforce of 50,000 now from 35,000 in 2018.