The Intelligence from The Economist Troubled shares, troubles shared: Adani and India Inc
Feb 1, 2023
Tom Easton, The Economist's Asia business correspondent, sheds light on the turmoil surrounding the Adani Group amid serious allegations of fraud by an American research firm. He discusses the unexpected support from Indian business leaders during this crisis and examines broader implications for corporate accountability in India. Additionally, Easton highlights Mexico's strategic advantages in the electric vehicle market and delves into the intriguing rise of MAGA rap, exploring its impact on political discourse and culture.
AI Snips
Chapters
Transcript
Episode notes
Adani vs. Hindenburg
- Hindenburg Research, a small American firm, accused the Adani Group, India's largest conglomerate, of stock manipulation and fraud.
- Adani called the allegations an attack on India, highlighting the close ties between Indian firms and the state.
India Inc.'s Solidarity
- Despite a share rout, Adani completed a share sale, raising $2.5B, partially thanks to last-minute purchases from other Indian tycoons.
- This suggests a collaborative effort within India Inc. to protect its members, potentially deterring future short sellers.
Mexico's EV Potential
- Mexico has significant potential in electric vehicle manufacturing due to its existing auto industry, skilled labor, and proximity to the US market.
- However, government policies, particularly regarding clean energy, hinder greater investment.