JPMorgan Identifies India as Bright Economic Spot Despite Tariff and H-1B Challenges

JPMorgan Chase & Co highlights India as a "bright spot" in the global economy due to its strong domestic growth and limited export dependence, despite challenges like tariffs and recent changes to the H-1B visa program under President Donald Trump. The US has imposed tariffs and a $100,000 entry fee on new H-1B visas, primarily impacting Indian nationals, raising concerns about potential effects on Indian talent pools and business operations, though current visa holders remain unaffected. JPMorgan is expanding its presence in India across investment banking and financial services, benefiting from the country's vast talent pool, even as it remains uncertain how the new visa rules will affect its technology hubs. Additionally, JPMorgan sees positive earnings prospects for India's non-bank lenders, assigning overweight ratings to some and neutral or underweight to others, reflecting valuation and growth considerations. Despite US policy pressures, India is expected to navigate these challenges and maintain a strong economic position, with global firms continuing to expand capabilities in the country. The situation underscores the complex interplay between trade policies, immigration rules, and global business strategies involving India and the US.