JPMorgan Sees India As ‘Bright Spot’ Despite Trump Tariff Woes

JPMorgan Chase & Co. sees India standing out as a “bright spot” in a challenging global economic landscape, thanks to its robust domestic growth and limited reliance on exports, according to Sjoerd Leenart, the bank’s top executive for Asia Pacific.

“Sure, it has its share of issues — the tariffs, now the H1B visa issues. But overall it has a strong hand to play,” Leenart said in an interview with Bloomberg Television in Mumbai, where it is holding its annual India conference. The Wall Street bank is confident India can get through the tariff issues, “and will land in a good place,” he said.

India has borne the brunt of policy changes by the US administration, with a 25% reciprocal levy on the country being doubled because of its purchases of Russian oil. Over the weekend, the country got a further shock after President Donald Trump signed an order to add a $100,000 entry fee for new H-1B visas, where Indians account for more than 70% of all such visas.

While it was too early to assess the full impact of the proposed H-1B visa changes, Leenart said it was a relief the fee doesn’t apply to existing H-1B visa holders.

Global technology companies and financial services firms are rapidly expanding their so-called global capability centers in India, drawn by the country’s deep talent pool and cost advantages. While Trump aims to protect US jobs by restricting immigrant inflows, the new rules could backfire and likely raise costs for American corporations pushing them to step up the expansion of these centers, tech executives said.

JPMorgan is benefiting from India’s vast talent pool but is not able to specify how the new visa policy might impact its tech centers in India, said Leenart.

The bank has been expanding its local presence in terms of investment banking, corporate banking and custody services, and increased its headcount by 20% over the last two years, according to Leenart.

JPMorgan’s business in India spans the gamut of commercial and investment banking, asset management, payments and securities services. In addition, the firm’s corporate centers in Mumbai, Bengaluru and Hyderabad support its technology and business operations globally with more than 55,000 employees.

In a separate interview with Bloomberg, Anu Aiyengar, JPMorgan’s global head of advisory and M&A, said the number of initial public offerings the firm is preparing to do in India is higher than any other market. The size of the IPO market this year in India could be much higher than last year. “I would not put a limit based on last year, this is a growing market,” she said.

The country has emerged as one of the world’s most active markets for new listings.