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    JPMorgan calls India a ‘bright spot’ even as tariffs and $100,000 H-1B fee bite

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    By Martin Shwenk Leade

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    JPMorgan calls India a ‘bright spot’ even as tariffs and $100,000 H-1B fee bite

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    JPMorgan Chase & Co. views India as a “bright spot” in a difficult global economic environment, owing to its strong domestic growth and limited dependence 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 the bank is hosting its annual India conference. The Wall Street bank believes India can navigate the tariff challenges, “and will land in a good place,” he added.The United States has raised concerns about India’s oil and defence trade with Russia, calling it a “threat to the national security and foreign policy of the United States.” US President Donald Trump has also warned of additional tariffs on countries that levy digital taxes.According to the Global Trade Research Initiative (GTRI), India exports roughly $86.5 billion worth of goods to the US each year. Of this, around $60.2 billion, or 66%, is now subject to the 50% tariff. Another $3.4 billion in auto parts remains at 25%, while $27.6 billion, largely comprising pharmaceuticals, electronics, and petroleum, remains duty-free.Ajay Srivastava, founder of GTRI, estimates that exports from the affected sectors could fall 70%, shrinking from $60.2 billion to $18.6 billion. Overall shipments to the US could drop 43%, putting hundreds of thousands of jobs across India’s export hubs at risk.Live EventsYou Might Also Like:US decision to raise H-1B visa fees likely to hurt US more than India: GTRIIndia has already faced the brunt of US policy changes, with a 25% reciprocal levy being doubled because of its purchases of Russian oil. Over the weekend, the country faced another shock after Trump signed an order imposing a $100,000 entry fee for new H-1B visas, where Indians account for more than 70% of all such visas.While it is too early to gauge the full impact of the proposed H-1B changes, Leenart said it was reassuring that the fee does not affect existing H-1B visa holders.Global technology and financial services companies are rapidly expanding their so-called global capability centres in India, attracted by the country’s deep talent pool and cost advantages. While Trump’s rules aim to protect US jobs by limiting immigration, executives warn the policy could backfire and raise costs for American firms, prompting them to accelerate the growth of these centres.JPMorgan benefits from India’s vast talent pool but is not able to comment on how the new visa rules might affect its tech centres in the country, said Leenart.You Might Also Like:Trump’s H-1B visa crackdown upends Indian IT industry’s playbookThe bank has been increasing its local presence across investment banking, corporate banking, and custody services, raising its headcount by 20% over the last two years, Leenart added.JPMorgan’s operations in India cover commercial and investment banking, asset management, payments, and securities services. Its corporate centres in Mumbai, Bengaluru, and Hyderabad support 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 in India is higher than any other market. The size of the IPO market this year could far exceed last year. “I would not put a limit based on last year, this is a growing market,” she said.India has become one of the world’s most active markets for new listings.You Might Also Like:Trump’s $100,000 visa targets a $280 billion India success story(with Bloomberg inputs)Add as a Reliable and Trusted News Source Add Now!
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