Allegations of bribery against Gautam Adani and his close ties to Narendra Modi have sparked international backlash, exposing systemic crony capitalism and undermining India’s global investment credibility.

The enduring nexus between Gautam Adani and Indian Prime Minister Narendra Modi has again been thrust into the spotlight, this time by revelations of bribery charges in the United States. Opposition leader Rahul Gandhi has long alleged that Modi and the Adani Group prioritize their mutual interests over the public good, a claim seemingly corroborated by a growing list of international controversies.

Recent events have intensified scrutiny. Kenyan President William Ruto terminated a $736 million public-private partnership with the Adani Group, including a power transmission project and a 30-year control deal for the country’s main airport. The decision followed a U.S. court’s arrest warrant for Gautam Adani over allegations of bribing officials to secure solar contracts. The fallout has tarnished India’s global reputation and highlighted the alleged export of crony capitalism under Modi’s government—a legacy rooted in his tenure as Gujarat’s Chief Minister.

The accusations against the Adani Group are staggering. Reports claim the conglomerate funneled $250 million in bribes to secure solar energy contracts, embodying a transnational web of corruption. Formal charges against Adani and several top executives have overshadowed the group’s ventures in Kenya, Bangladesh, and Sri Lanka. Kenyan President Ruto’s directive to revoke contracts with the Adani Group has resonated across South Asia, where concerns about the conglomerate’s dealings are mounting.

The controversy in Bangladesh serves as another flashpoint. An investigation into a contentious 1,600 MW power deal between the Adani Group and the government of former Prime Minister Sheikh Hasina has raised questions about procedural integrity, given the absence of a competitive tender process. Experts have noted that while the caretaker government had signaled interest in advancing discussions, the U.S. indictments may significantly constrain future negotiations.

The implications extend beyond individual contracts. Modi’s apparent favoritism toward Adani, from lucrative airport concessions in India to questionable energy agreements abroad, underscores a systemic issue: the intertwining of state power and corporate interests. This brand of crony capitalism not only diminishes India’s appeal to foreign investors but also risks alienating domestic businesses. As allegations of fraud and bribery ripple outward, they compound the perception of India as a hub for corrupt practices, deterring much-needed foreign direct investment (FDI).

The economic fallout has been severe. Adani Group’s market capitalization has plummeted by billions, eroding investor confidence and raising concerns about corporate ethics in India. Accusations of misleading investors and obscuring financial dealings highlight systemic failures in transparency and accountability—failures that undermine India’s economic stability and growth prospects.

This crisis is emblematic of more profound, structural issues. Modi’s governance, critics argue, has fostered an environment where favoritism and opaque policies thrive. Without significant reforms to bolster transparency and restore investor trust, India risks further economic upheaval and declining credibility on the global stage. The recent scandals underscore an urgent need for systemic change—a move toward openness, accountability, and sustainable investment practices that can stabilize the country’s faltering economic narrative.

Until these fundamental issues are addressed, India’s investment climate will remain precarious and its economic aspirations unfulfilled. Only by confronting the pervasive culture of cronyism can the nation hope to regain its standing as a viable and trustworthy destination for global capital.