Adani's Global Footprint: Instrument of Indian Diplomacy?

The Adani Group, led by business tycoon Gautam Adani, who rose to prominence for his unprecedented rise and is now facing one of the world’s largest corporate crises, losing more than 40% of his wealth in four days and plummeting from 120 billion dollars to 72 billion dollars, has had a significant impact on India’s ties with other countries, negatively impacting India’s foreign policies. Adani Group’s investments in other countries reflect India’s growing role as a global economic player and its desire to secure resources and markets for its growing population and economy. The investments also demonstrate the increasing confidence of Indian companies in expanding their operations overseas and the recognition of India as a major player in the global economy.

Adani Enterprise has formed several foreign partnerships and joint ventures to expand its business globally. Some notable examples include:

1. Adani Ports and Special Economic Zone (APSEZ): Adani has formed partnerships with global companies such as APM Terminals, PSA International, and DP World to develop and operate ports in India.
2. Adani Green Energy: The company has formed a joint venture with Total SA, one of the largest oil and gas companies in the world, to develop renewable energy projects in India.
3. Adani Defence and Aerospace: Adani has formed partnerships with global aerospace and defence companies such as Saab AB and Lockheed Martin to manufacture and export defence equipment from India.
4. Adani Mining: Adani has formed a joint venture with Downer EDI, an Australian mining services company, to develop the Carmichael coal mine in Australia.

These partnerships and joint ventures have allowed Adani to access expertise, technology, and funding from global companies, as well as expand its reach into new markets.

For example, Adani’s investments in the energy sector help ensure a reliable source of energy for India, which is essential for its economic growth. By investing in energy projects overseas, Adani can access a wider pool of resources, such as coal, natural gas, and renewable energy, which can help meet the growing energy needs of India. This can also reduce India’s dependence on a single source of energy, improving India’s energy security.

In addition, Adani’s investments help build economic partnerships with other countries, providing opportunities for Indian businesses to expand overseas. This can lead to greater trade and investment flows between India and the countries where Adani operates, which can help support economic growth and job creation in both countries.

Moreover, Adani’s investments can also help improve diplomatic relations and build goodwill between India and other countries. By investing in infrastructure projects and creating jobs, Adani is contributing to the local economies and improving the standard of living for people in those countries. This can lead to greater cooperation and understanding between India and those countries, strengthening diplomatic ties.

Overall, Adani Group’s investments around the world reflect India’s growing economic and strategic interests and its desire to secure resources, markets, and partners for its continued growth and development.

Diplomatic relations between countries play a critical role in shaping global politics, economics, and security. The Adani Group’s investments in other countries can help improve these relations in several ways:

1. Building goodwill: By investing in infrastructure projects and creating jobs, Adani is contributing to the local economies and improving the standard of living for people in those countries. This can help build goodwill between India and those countries, leading to greater cooperation and understanding.
2. Strengthening ties: Adani’s investments can help create a stronger economic relationship between India and the countries where it operates. This can lead to greater trade and investment flows, which can in turn support economic growth and job creation in both countries, strengthening the ties between the two nations.
3. Political stability: Adani’s investments in countries facing political or economic instability can help support stability and development in those countries. This can help improve the overall security and stability of the region and contribute to a more peaceful global environment.
4. Diplomatic leverage: By investing in critical infrastructure projects, Adani can help shape the development trajectory of the countries in which it operates. This can provide India with a strategic advantage in diplomatic relations and can help shape the policies of those countries in ways that are favourable to India.

Three recent announcements have pretty much set the tone for Indian foreign policy in the year to come. First, External Affairs Minister S. Jaishankar’s remarks on India-US relations were remarkable for their confidence and forthrightness. Second, Russia’s export of crude oil to India surged to a new high of one million barrels a day, according to the energy tracker Vortexa. And third, Gautam Adani, the third richest person in the world and said to be close to Prime Minister Narendra Modi, completed the purchase of Haifa Port in Israel, strategically located on the Mediterranean, for a cool $1.15 billion. All three seemingly unrelated events are actually related—and that too, quite interestingly. Jaishankar’s message to the high-profile audience at the closed-door conference organised by the Ananta Aspen Center think tank in Delhi was, essentially, a piece of advice delivered to friends.

The India-US relationship is not a transactional one, so don’t look at the purchase of defence goods as an indicator of things looking up or down. In late July, India’s largest port developer and operator, Adani Ports and Special Economic Zone Limited (APSEZ), acquired the lease for Haifa Port, the second largest in Israel, lasting until the year 2054, along with Israeli chemical and logistics group Gadot. Clinching the 4.1-billion-shekel ($1.18 billion) deal, Adani holds 70% of the shares, while Gadot has a 30% stake.

The implications are set to reverberate far beyond the region and position Israel at the heart of the global competition for domination of trade routes. It may also come at the expense of other states in the region, including Egypt and its prized Suez Canal.

The Indian group had been pushing for the port deal for two years, but with no success. This time, the quoted price was 55% higher than the next highest bidder.According to Israeli news outlet Globes, the offer was much higher than the $870 million Tel Aviv had expected to receive.

In conclusion, Adani Group’s investments in other countries can have a significant impact on the diplomatic relations between India and those countries. By contributing to local economies and improving the standard of living for people in those countries, Adani can help build goodwill and strengthen ties, leading to greater cooperation and understanding between India and other nations.