JP Morgan top boss writes 7% growth prescription for India, says policies need to be consistent

Share

Tweet

Share

Share

Email

Comments

Jamie Dimon joined the league of industry leaders calling upon the government to keep policies consistent and treat international capital fairly. Despite a volley of glum economic predictions for India pegging the country posting a negative double-digit growth in the current fiscal, Dimon is of the view that the country can achieve 7% growth despite the recent pain caused by Covid-19 pandemic and local lockdowns.

He says the current global crisis is a great opportunity for the country as international companies look to diversify supply chains and alternate geographies that offer skilled labour and stable regulatory environment.

Speaking to Economic Times, ahead of the bank’s annual investor conference, JP Morgan Chairman said India has taken a lot of tough decisions to get around the crisis but the road to a robust recovery is tough. India should aspire for 7% growth and in order to achieve that the country needs reforms in capital markets, large public banks, a consistent regulatory environment in order to attract international capital, he added.

Dimon, who has been advising his clients to invest in India, further added that a flexible labour policy with robust security net for the employees will go a long way in ensuring fair treatment of foreign investors and also ensure that workers are protected against unexpected shocks.

He dubbed US-China trade spat as “necessary” for a fairer trade regime globally.

“The world is going to put more pressure on China around fair trade,” said Dimon adding that “Europe has started to feel that way, India has started to feel that way, Asia feels that way. America can lead the way in that. It is not going to be against China, but the world was one thing years ago when the WTO was set up, it is something different today.”

Speaking about the pandemic, Dimon said its impact would have been far worse for global economy had governments not provided economic stimulus packages and slashed interest rates.