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

Core Viewpoint - JPMorgan Chase & Co. views India as a "bright spot" in a challenging global economic environment, citing strong domestic growth and limited dependence on exports despite facing tariff and H-1B visa issues [10][11]. Trade and Tariff Impact - India exports approximately $86.5 billion worth of goods to the US annually, with around $60.2 billion (66%) now subject to a 50% tariff, and $3.4 billion in auto parts at 25%, while $27.6 billion remains duty-free [3][11]. - Ajay Srivastava from GTRI estimates that exports from affected sectors could decline by 70%, reducing from $60.2 billion to $18.6 billion, leading to an overall shipment drop of 43% and risking hundreds of thousands of jobs in India's export hubs [4][11]. H-1B Visa Changes - The US has implemented a $100,000 entry fee for new H-1B visas, which predominantly affects Indian applicants, who account for over 70% of such visas [6][11]. - While the full impact of the H-1B changes is uncertain, it is noted that existing visa holders will not be affected [7][11]. JPMorgan's Operations in India - JPMorgan has been expanding its local presence in investment banking, corporate banking, and custody services, increasing its headcount by 20% over the last two years [8][11]. - The bank's operations in India encompass commercial and investment banking, asset management, payments, and securities services, with over 55,000 employees across corporate centers in Mumbai, Bengaluru, and Hyderabad [9][11]. IPO Market in India - JPMorgan's global head of advisory and M&A indicated that the number of initial public offerings (IPOs) being prepared in India is higher than in any other market, with expectations that this year's IPO market size could significantly exceed last year's [10][11].