🤨 Adani Helping India Win the India-China War?
The India-China war just keeps getting more intense and more interesting. And interestingly enough, the Adani Group also has a role to play. ReadOn to find out!
Years from now, our kids are going to read about the iconic India-China rivalry in their history books.Â
Because we aren't just competing with China over border issues, we're competing with the country on an economic front as well.
To win this economic war, China launched a major weapon a couple of years back: The Belt and Road Initiative (BRI) .Â
But it seems like India may have the perfect counter weapon: The Adani Group.Â
🚀 China's Sneaky Economic Weapon
To understand how the Adani Group can be our Brahmastra, we first need to get context.Â
So, let's travel back in time to 2013.
Location: China
By 2013 China had built massive infrastructure capacity. In fact, it had more capacity than it needed. So, it decided to export a little bit of this capacity to other countries.Â
And the Belt and Road Initiative was born.Â
This served two purposes:Â
Economic prosperity for China
Economic hold over countries to which it was exporting infrastructure building capacity
But many countries in South East Asia were struggling at the time to build infrastructure because they simply didn't have cash.Â
So, the Belt and Road Initiative gave these countries loans to build ambitious projects. These projects were set to bring in revenue for these countries through which they could pay China back.Â
This would also facilitate trade between China and these other countries.Â
Instead what happened was most of these countries became debt-ridden.Â
Look at Sri Lanka, Pakistan or Bangladesh. Their economic crises all in some part stemmed from their BRI debt.Â
In fact, Sri Lanka even had to give up the rights to the Hambantota Port to China for 99 years.Â
Now, China controlling our neighbours' economy in such a significant way obviously harms us. For instance, earlier Sri Lanka had rejected India for infrastructure development and given the rights to China.Â
But with economic crises now coming in, many countries are now thinking that the BRI initiative is nothing more than a debt trap. Whether that is true or not, this is a great opportunity for India.Â
✨ India's Time to Shine
Now, while the Indian government may not have the bandwidth or the money to sign projects with multiple countries overseas like China, we do have a company that can do this.Â
The Adani Group.
It already has an expertise in developing ports, something that China was focusing on under the BRI initiative. Plus, Adani Green can also help countries shift to green energy, something that is in vogue right now.Â
 In fact, the Adani Group has already been making a lot of progress in this aspect.Â
It has been providing power to Bangladesh and Sri Lanka and has signed a few other infrastructure projects as well.Â
One such deal is the development of Colombo West International Container Terminal. Adani Group has a 51% stake in the project.Â
This port is super close to a port China controls in the country, putting us on a similar footing with it.Â
And that's not all. The Adani Group has also signed deals to launch two green energy projects in northern Sri Lanka.Â
It has also won the tender to take over the Haifa port in Israel.Â
All of these acquisitions will not only benefit Adani but also help India get an edge over China.Â
The BRI initiative had helped China build trade relationships with many countries and the Adani Group could now do the same for India.Â
There's just one catch. These projects could turn unsustainable for the Adani Group. Sri Lanka is anyway in the middle of an economic crisis. If it is unable to pay debts then it could cause trouble for the debt-ridden conglomerate.Â
On the other hand, this could be a great way for the Adani Group to get foreign investment. Huh?Â
You see, a lot of Western countries want to put an end to China's Belt and Road initiative because it has led to China's growing dominance.Â
Now, they have tried to launch similar initiatives to stop China but it hasn't worked out. So, they could now turn to supporting the one player that can stop China. And more investments could flow to Adani Group.Â
But to get these investments the Adani Group may have to be a little more transparent about its finances. Which will be a great thing for retail investors betting big on the group.Â
However, Adani Group's entry into the Sri Lanka market is causing a lot of hue and cry in the country.Â
Its citizens are against another foreign power coming in and taking control of resources. They claim Adani got a sneaky interest in Sri Lanka as the India government did not exactly reveal the process through which the Adani Group got the deal.Â
So, our dream to be the next China could be in trouble.
âš¡In a line: The Adani Group could help India replace China's influence in many countries, drive more exports, and bring in more foreign money.
💡 Quick question: But do you think putting the responsibility of fighting China on the shoulders of a debt-ridden company is the right thing?Â
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