Any serious damage to billionaire Gautam Adani’s empire could derail Indian Prime Minister Narendra Modi’s economic plan as the conglomerate operates the largest chunk of infrastructure projects — including mines, ports and airports — in Asia’s third-largest economy.
(Bloomberg) — Any serious damage to billionaire Gautam Adani’s empire could derail Indian Prime Minister Narendra Modi’s economic plan as the conglomerate operates the largest chunk of infrastructure projects — including mines, ports and airports — in Asia’s third-largest economy.
The business group has seen a meltdown following US short seller Hindenburg Research’s Jan. 24 allegations of fraud and market manipulation that at one point wiped out more than $100 billion of the group’s stock market value. The conglomerate has repeatedly denied all the charges, while Adani and his family have moved to prepay some borrowings to calm investor nerves.
“If Adani collapses, he would sort of take down a large chunk of the prime minister’s economic vision with him,” Sadanand Dhume, a senior fellow at the American Enterprise Institute, told Bloomberg Television. “This is a person who has invested not just in infrastructure, but also in green energy.”
Modi has continued to deflect opposition efforts to draw attention to the ties between him and Adani. Both men hail from the western state of Gujarat and the tycoon’s meteoric growth mirrors Modi’s own political journey to the top elected office. The prime minister has avoided any direct reference to Adani’s troubles and the opposition allegations.
India’s Modi Deflects on Adani Links, Lashes at Opposition
“I don’t think there is any businessman in India today who is as closely identified with the prime minister as Gautam Adani,” Dhume said, adding “their close links go back more than 20 years.”
–With assistance from Bibhudatta Pradhan.
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