India Offers Enormous Potential
Global investors should remain open to India’s enormous potential, despite the heightening crisis engulfing the Adani Group, says Nigel Green, CEO of the deVere Group. The observation comes as MSCI, the global index provider, is set to change its weightings for Adani Group shares after assessing how many shares can be freely traded. India’s opposition parties are demanding a probe into allegations by a U.S. short-seller against the conglomerate which triggered the Adani Group of companies share price to plummet sharply. Market losses have now exceeded $110 billion since Hindenburg Research accused it of stock manipulation and accounting fraud. Adani’s businesses include port management, electric power generation and transmission, renewable energy, mining, airport operations, natural gas, food processing, and infrastructure. “With questions now mounting about this hugely influential conglomerate and issues of regulatory frameworks, nepotism, governance and debt, India’s credibility amongst global investors is now hanging in the balance,” he said. The debacle, according to many experts, is particularly inconvenient as some multinationals are currently looking to India as a substitute to China as an investment destination. Green urges investors to keep an open mind on India’s incredible opportunities as its economy is showing incredible resilience despite external tailwinds such as supply chain issues, the reopening of China, the war in Ukraine, and the impact of considerable economic slowdowns in developed economies.