Recent attacks against India's Adani Group are part of a US deep state plan to destabilise the credit-extending State Bank of India (SBI) and Life Insurance Corporation (LIC), industry sources have told Sputnik India, going on to exclaim that: “God forbid, if SBI and LIC are impacted, our country is done.”
Western-backed reports have questioned the SBI and LIC's investments in Adani, alleging malpractice at the group.
Similar moves seek to undermine regulators like SEBI (Securities and Exchange Board of India) and India's parliament, suggesting dysfunction in the country's standards and auditing practices, something that can be seen by the recent withdrawal of audit firms like Deloitte Haskins & Sells.
However, these attacks seemingly reveal fears in the West over Adani's global expansion, which is hard for many to accept and makes West profoundly worried about India's economic ascent, the sources added, emphasising the West being "mighty scared."
The sources clarified that Adani's approach aligns with the Delhi government policies and, as one of the country’s largest infrastructure companies, it relies heavily on state-backed loans, which the group has already taken from the SBI and LIC.
During and after the Hindenburg incident, loans from these institutions, including the SBI, to Adani accounted for less than 1% of their lending portfolios, according to the sources.
Following the Hindenburg report, SBI’s total profit from Adani investments initially fell from $10.01 billion to $6.7 billion from an original investment of $3.33 billion, indicating a profit of more than double the initial investment, sources unveiled.
The pundits explained that over the past year and a half, SBI's profits have recovered markedly, with the Hindenburg incident prompting LIC and SBI to extend their credit lines to Adani to 1.1% of their portfolios, helping to lower inflated share prices.
However, the Adani's survival through the Hindenburg crisis is attributed to its strong infrastructure and well-established operations, the industry sources highlighted.
Adani’s Market Expansion Spurs Increased Western Criticism
At the same time, the Adani Group is back in the news following the Kenyan government's proposal to lease Jomo Kenyatta International Airport to the company for 30 years, involving a $1.85 billion investment, triggering public outcry.
In July, a whistleblower's social media post revealed that Adani would take over Kenya’s main international airport, sparking widespread outrage. The deal has since been confirmed by the Kenya Airport Authority (KAA) which signed a build-and-operate agreement with Adani.
However, the Adani group has denounced fake news regarding some of the details of its Kenya operations.
"Certain vested interests with malicious intent are circulating multiple fraudulent press releases, including one titled 'Adani Group Denounces Baseless Accusations and Threats', related to our presence in Kenya," according to a press release from Adani Group on Monday.
This has not deterred Adani, however, which has broadened its operations to the Haifa port in Israel and is making substantial investments in Sri Lanka, Morocco, the Philippines, and Tanzania, the anonymous sources that spoke to Sputnik India explained, highlighting its expansion into Africa.
"African nations are increasingly becoming more aware and are working to free themselves from the influence of Western groups and governments as they mature and develop," they added.
Like India during British colonial rule, Africa is rich in minerals and resources but has suffered similar exploitation by European powers.
The Adani Group reportedly seeks to serve as a bridge of opportunities in this context, helping African nations protect and develop their infrastructure, which is a major challenge for the continent, the industry sources believe.
Their views were shared by Amb (Retd.) Anil Trigunayat, a distinguished fellow at the Vivekananda International Foundation (VIF).
"The criticism against the Adani Group appears biased and tied to its growing global influence, particularly in Asia and Africa, as major infrastructure investments frequently become targets of political disputes in countries like Kenya," Trigunayat told Sputnik India.
The former diplomat suggested that these attacks might be efforts to distract or stem from anti-India bias spurred by misinformation.
He highlighted that Western media has been heavily critical of the Adani Group, which has become a significant global player and may soon reach a trillion-dollar valuation, with such intense scrutiny likely due to the Western media's tendency to exaggerate.
The West's fear about India's economic strength arises from its rise to a leading global position and its strategic autonomy, which fosters competition and challenges as Indian companies grow internationally, he concluded.