White House on Adani bribery case

The White House has expressed confidence in its 'strong' ties with India amidst the ongoing controversy surrounding allegations against the Adani Group. 

The issue

• The US Department of Justice issued a press release detailing allegations on the Adani Group for paying over $250 million (approximately Rs 2,100 crore) in bribes to Indian officials in exchange for favourable terms for solar power contracts.
• If the case proceeds badly for Adani, it will further damage his position in India. It will be difficult for Indian business and State institutions to disentangle themselves from Adani as he is heavily present in the infrastructure and energy sectors (most favoured sectors).

India-US Relations

The relationship between the United States and India has grown significantly over the last 30 years, with cooperation in key areas such as defense, technology, and international initiatives. The engagement has been built around three main pillars:

• India as the World's Largest Democracy: The U.S. values India’s democratic system, and they often emphasize their shared democratic ideals. The U.S. sees India as a “natural ally” because both countries are democracies—India is the world’s largest, and the U.S. is one of the oldest.
  • However, despite this shared democratic identity, their approaches to democracy can differ. India generally avoids promoting democracy abroad and often has a more pragmatic stance compared to the U.S. on issues concerning non-democratic countries.
  • India’s own democracy has faced challenges, but the 2024 parliamentary elections have helped reaffirm its democratic credentials.
• India as a Bulwark Against China: The U.S. sees India as a counterbalance to China, especially as tensions between India, the U.S., and China have risen. India’s relationships with China and the U.S. have been in competition, particularly over issues like territorial disputes and the South China Sea.
  • India has become more involved in U.S.-led initiatives and has deepened defense cooperation with the U.S., but it still seeks to maintain strategic autonomy. This means India avoids forming strong alliances with any one country, including the U.S.
  • India’s relationship with China is complex, as it has economic ties with China and military reliance on Russia, which limits its willingness to fully align with the U.S. in potential conflicts, like over Taiwan.
• India as an Engine of Global Growth: The U.S. sees India as a key player in global economic growth, especially in areas like technology and manufacturing. India’s economy is growing rapidly, it has the world’s largest population, and it’s expected to become the third-largest economy in the next decade.
  • The U.S. also sees India as an alternative to China in terms of economic partnerships, especially with the trend toward reducing reliance on China in global supply chains.
  • However, India’s growth faces challenges. It has struggled to expand its manufacturing sector, and issues like infrastructure, labor, and protectionism hold back its economic potential. India is unlikely to replace China’s central role in global supply chains in the near future.