Adani indictment in US damages global credibility of India Inc

The global footprint of the Adani Group, a major Indian business conglomerate, has come under scrutiny due to allegations of corruption, cronyism, and violations of international laws. The group has expanded its operations across several countries, including Sri Lanka, Kenya, Bangladesh, and others. However, recent legal issues, including a US grand jury indictment, are threatening its international business standing. This has raised concerns about the Indian government's support for Adani’s global ventures and its broader implications for India's economic diplomacy.

Adani’s Global Expansion and Controversies

• Adani Group's Global Reach: The Adani Group has expanded its operations from Australia to Kenya and Sri Lanka, with the Indian government actively supporting its international ventures in the name of geo-economics.
• Corruption Allegations and Legal Troubles: Allegations of corruption and bribery linked to Adani’s global projects have led to investigations in countries like Sri Lanka, Kenya, and Bangladesh, with the US legal system scrutinizing the group’s activities.
• US Legal Exposure: The Adani Group's reliance on overseas funding, particularly from the US, has exposed it to scrutiny under US anti-bribery laws, as in the case of Adani Green, which raised funds in the US and was registered there.

Geopolitical and Economic Implications for India

• India’s Geopolitical Support for Adani: The Indian government has been accused of supporting Adani’s global ventures as part of its geo-economic strategy to enhance India's global influence, reflecting the country's "comprehensive national power".
• Vulnerabilities of Dependence on Western Finance: The Adani Group’s globalisation has been funded largely through Western financial resources, making its expansion vulnerable to Western legal frameworks, unlike China’s self-reliant approach.
• Impact on India’s Global Reputation: Adani’s legal issues have cast a shadow over India’s global image, particularly damaging "Brand India" as it weakens the credibility of Indian businesses in the international arena.

Crony Capitalism and Domestic Concerns

• Cronyism and Political Nexus: The nexus between business and politics in India has led to crony capitalism, which has often gone unchecked domestically but is now causing problems on the international stage.
• State-Supported Globalisation and Risks: The Indian government's overt support of Adani’s international ventures has crossed the line from promoting business interests to potentially endorsing dubious practices, thereby undermining national integrity.
• Need for Accountability: The exposure of the Adani Group's unethical practices calls for swift action to preserve the credibility of Indian business globally, emphasizing the need for exemplary accountability to restore trust.

Practice Question:

Critically examine the implications of the Adani Group's global expansion on India's foreign policy and economic diplomacy. How do allegations of cronyism and legal issues affect India's international standing?