US President Donald Trump is making swift and impactful decisions in his second and final term, leading to significant geopolitical shifts. However, one of his recent moves has brought substantial relief to India’s second-richest man, Gautam Adani. According to a report by the Financial Times, sources indicate that the Adani Group is once again gearing up to make major investments in the United States. This development is particularly noteworthy given the previous allegations against the conglomerate. The group is now reconsidering funding projects across multiple sectors, including nuclear energy, utilities, and the establishment of a port on the East Coast.
Resuming Investment Plans in the US
After Trump’s re-election last year, Adani had pledged to invest $10 billion in the US, a move projected to generate around 15,000 jobs. However, soon after this announcement, a lawsuit was filed in the US against Adani and seven other high-ranking officials of his company. They were accused of allegedly paying $265 million in bribes to secure solar energy contracts in India while withholding this information from American investors. Due to this legal action, the Adani Group temporarily shelved its investment plans in the US.
Policy Change Spurs Renewed Interest
A source close to Adani revealed that Trump’s recent decision to abolish the Foreign Corrupt Practices Act (FCPA) in early February has significantly eased concerns for the Adani Group. This policy shift has fueled speculation that the legal hurdles the group faced may soon be resolved. While Adani himself was never directly implicated under this law due to his non-US citizenship, the accusations against other associated individuals were primarily based on it. The Adani Group has consistently dismissed these allegations as unfounded.
Another insider stated that with Trump back in office, the group has revived some of its investment strategies. However, uncertainties persist, as the legal proceedings could still pose long-term risks. A different source close to Adani mentioned that while the company remains committed to its investment intentions, it prefers to wait until the legal concerns are fully addressed. Previously, the group was in discussions with American firms for potential collaborations and had explored petrochemical investment opportunities in Texas. As of now, Adani Group does not have any significant ongoing projects in the US.
Expert Opinions on Adani’s US Prospects
Legal disputes in the US could pose a considerable challenge to the Adani Group’s expansion. Michael Kugelman, director of the South Asia Institute at the Wilson Center in Washington, noted that if the charges against Adani are dismissed, the company could move forward with its investment plans in the US. He further highlighted that Adani holds immense wealth and maintains strong ties with the Modi government, factors that could make Trump more inclined to welcome his investments. The Adani Group has not provided any official response regarding this matter.
