Global investors are still broadly bullish on India’s long-term prospects but uncertainty over the application of tax rules and regulations remains a heavy weight on investment decisions, JPMorgan Chase Chairman and CEO Jamie Dimon said Tuesday.
“Most investors probably have very positive views on long-term investment in India, but they worry about the inconsistent application of taxes,” Dimon told The Economic Times in an interview.
“I get a lot of complaints from companies about paying more tax on a deal than they expected,” he told the newspaper.
Regulatory restrictions make it hard for foreign companies to compete in India and more competition would be good for the economy, Dimon said.
“Foreign companies often have a hard time competing here because they’re not allowed to. As a result, India attracts less foreign direct investment,” Dimon said.
Despite those worries, Dimon said India has “great prospects” and has taken steps over the years to improve its economy. His comments were made at JPMorgan’s India investor conference in Mumbai, where he also met Finance Minister Nirmala Sitharaman on Monday, Business Standard reported.
According to Moneycontrol, India’s economy grew at almost 8% in the most recent quarter and foreign investors have pulled out about $25 billion from Indian stocks this year.
