Will current challenges in the business sector affect India’s ambition of becoming a global superpower? No, says Anand Mahindra.
The chairman of Mahindra Group alluded to the Adani Group turmoil in a tweet on February 4, noting that India has faced crises in the past to emerge stronger each time. Never bet against India, Anand Mahindra warned those worried about the wider fallout of accounting fraud allegations levelled against the Adani Group by US short-selling firm Hindenburg Research.
“Global media is speculating whether current challenges in the business sector will trip India’s ambitions to be a global economic force,” he wrote. “I’ve lived long enough to see us face earthquakes, droughts, recessions, wars, terror attacks. All I will say is: never, ever bet against India.”
Financial contagion fears spread in India on Friday as the Adani Group's crisis worsened. The crisis was triggered by a Hindenburg Research report last week in which the US-based short-seller accused the Adani Group of stock manipulation and unsustainable debt.
The company has refuted the allegations.
Friday capped a week which saw market value of Adani Group companies plunge by almost half since the report was released. The plunge sparked concerns about spill over into the broader financial system.
Although shares in Adani companies recovered after sharp falls earlier on Friday, the seven listed firms have still lost about half their market value, totalling more than $100 billion since Hindenburg published its report on January 24.
The Adani Group crisis has been covered extensively by global media. “India has been the relative safe haven market, and the Adani accusations are a cold shower for domestic and foreign investors,” Charlie Robertson, global chief economist with Renaissance Capital, told Financial Times.
(With inputs from Reuters)
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