Adani group has been embroiled in several controversies, including alleged tax evasion and environmental violations. According to Alicia Garcia Herrero, a chief Asia Pacific economist at Natixis, the fallout from these issues could have political implications for India.
In an interview with CNBC’s “Squawk Box Asia,” Herrero explained that while corporate governance issues affect countries globally, the Adani case is particularly “highly political.” She added that the political overtones of the Adani developments have resulted in a different behavior across the investor landscape.
The Adani Group’s controversies have sparked protests and criticism from environmental groups and opposition politicians, with some accusing the government of favoritism towards the company. The situation has also attracted international attention, with some investors and foreign companies distancing themselves from the conglomerate.
Herrero suggested that the fallout from the Adani case could impact India’s reputation and potentially deter foreign investment. She also noted that the political implications of the controversy could extend beyond the Adani Group, potentially affecting other companies and the overall business environment in India.