Optimism about India 'completely' justified; Modi doing 'very good' job: JP Morgan CEO

JP Morgan & Chase CEO Jamie Dimon on Tuesday said the optimism about India is completely justified, and urged the US to negotiate better trade and investment relationships. Dimon is visiting India on the sidelines of the JP Morgan India Investor Summit.

In an interaction with CNBCTV18, Dimon says the presence of multinational giants such as Mckinsey and Accenture as well as domestic conglomerates like Tata Group are driving up the optimism in India.

"I think the optimism about India is completely justified. Narendra Modi is doing a very good job with things like Aadhaar to get bank accounts of several thousand people, simplifying taxes and the opening up of more foreign direct investments, and national infrastructure program...We are not the only bank here (in India), but the country also has Mckinsey and Accenture, and local companies like Tata Group etc., which are driving up the investments in India. It is just not because of the complications in China. I think that it is an opportunity. But some of this optimism has been there in India anyway," says Dimon.

According to Dimon, India and the US are natural partners. He says the change in globalisation following Russia’s invasion of Ukraine will play a huge opportunity for India in terms of services and manufacturing. "The more important thing is the Ukraine war, oil, and food crisis and migration is affecting all global relationships including that of the US and China. I think the US takes it very seriously...I think that the US should stop thinking that China is a 10-foot giant," says Dimon.

Calling India and the US to be natural partners, Dimon notes that the Ukraine war has changed relationships globally including that of the US and China.

"India and the US are natural partners. Between Russia and China, you have to be non-aligned, but we are your best friend. I mean, anyone who doesn't think that through hasn't thought really carefully. We (the US) should sit down with India and negotiate better trade and investment relationships," says Dimon.

Notably, in an interaction with The Economic Times, Dimon says the US and India will be natural allies for 100 years.

Earlier this month, in a first, the global financial services company says it'll include Indian government securities or G-Secs in its emerging market bond index. The move is likely to boost the inflows of the US dollar in the country and will aid in reducing the interest rates. Dimon says the inclusion will bring foreign inflows worth $25 billion to the Indian market.