Aadhaar makes JPMorgan’s Jamie Dimon bullish on India; tax reforms, FDI drive optimism

JPMorgan Chase CEO Jamie Dimon.

Growing financial inclusion as a result of the Aadhaar system, tax simplification and a renewed focus on infrastructure are among the factors that make JPMorgan Chase CEO Jamie Dimon bullish on India’s growth story. He noted that as a result of strong policy decisions, the optimism in India’s economic and financial prospects is growing.

Speaking to CNBC-TV18 right after his first visit to India since the pandemic, Dimon lauded the country’s push for the inclusion of thousands via the Aadhaar system, the tax simplification and the promotion of foreign direct investment, which has greatly contributed to positive sentiment among investors across the globe.

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Discussing the ‘China + 1’ strategy, the JPMorgan Chase CEO said that the optimism in India isn’t flourishing only as a result of the complications with China; rather, some of this optimism would be there regardless.

He noted that the world has its eyes on India, since JPMorgan Chase isn’t the only large, global conglomerate setting roots in the country. “The universe is here, we're not the only bank [in India], there are large other banks with a lot of people, but so is Accenture, McKinsey and obviously you have your local Tata, etc, so those things are driving optimism,” Dimon added.

India, America: The new besties

Despite the drive for decoupling, globalisation still marches on. He added that India and the United States of America are natural partners, saying, "We are your best friend." Following G20 negotiations, Dimon recalled asking his Indian associates, “It's really great but what about trade?”

He urged India and America to realign their focus on trade and investment ties, not just labour. He added that the two governments should discuss opening up more markets to both sides, saying “India can let some more competition in here, we can bring in more capital.”

As his outlook on China turns cautious, Dimon highlighted various facets that could drive further relations between India and America. “Between Russia and China, you have to be kind of non-aligned, but we are your best friend. I mean, anyone who doesn't think that through hasn't thought really carefully,” Dimon added.

However, contrary to most, he believes not only nations, but also companies, will be making decisions and determinations that change flows. “That creates a huge opportunity in India for services and manufacturing sectors,” said Dimon. He hopes political leaders sit down to have these conversations, which will allow the nations to adapt to the changing economic and global scene.