• Tuesday, May 30, 2023


Modi government hasn’t intervened in Adani crisis, says economist of PM advisory council

(L-R) Indian industrialist Gautam Adani (Photo by SAM PANTHAKY/AFP via Getty Images) and PM Narendra Modi (Photo by Yuichi Yamazaki/Getty Images)

By: Shubham Ghosh

The Narendra Modi government has not intervened in the Adani Group fiasco over a report by US short seller Hindenburg Research which caused a mayhem in the Indian conglomerate’s shares, Sanjeev Sanyal, an economic adviser to the prime minister, said.

According to Bloomberg, Sanyal, who is a member of the prime minister’s economic advisory council, said in an interview that the Indian government did not intervene anywhere.

“Nobody’s having to rescue anyone in our system,” he was quoted as saying.

According to Sanyal, the exposures to Adani Group companies from the State Bank of India, the country’s biggest lender, and the Life Insurance Corporation, its largest life insurer, are very small.

He also added that no company is under any financial stress, the Bloomberg report added.

Shares in Adani group companies plummeted in the wake of Hindenburg Research’s January 24 report that accused the former of fraud and market manipulation. The company, led by one of Asia’s richest businessmen Gautam Adani, refused the charges.

The selloff wiped more than $100 billion (£81.5 billion) off the company’s market value.

“Our job is to make sure the markets are transparent and liquid and function– not for us to intervene,” Sanyal, 52, was quoted as saying.

“Transparency and orderly market movement is the only thing we care about. If that is maintained, the prices will sometimes go up, sometimes they’ll come down.”

The economist also said the recent collapse of Silicon Valley Bank in the US will not have any first-order impact on the South Asian nation’s startups.

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