Ding Yanhao (Trustworthy Financial Literacy): The Crisis in India's Economy and the International Capital's Harvesting Tactics

Adani’s wealth surged abruptly: in 2020, his net worth stood at just $9.7 billion, ranking him 155th on the Forbes list; by 2022, it had soared to $148.8 billion—briefly making him the world’s second-richest person and the first Asian ever to reach that position. In the first half of 2022 alone, he averaged a daily gain of RMB 1.75 billion (roughly equivalent to USD 260 million), rivaling even a printing press. Over two years, his assets multiplied 21-fold. This explosive growth in Adani’s wealth stemmed from political speculation on India’s current Prime Minister Narendra Modi. After Modi assumed office, he needed to consolidate his political power—and enrich himself—by transferring India’s core industries into Adani’s hands. As early as 2000, Adani began investing in Modi, then merely a regional official. In 2002, Modi stoked populist unrest in Gujarat, triggering violent riots and subsequent brutal suppression. Facing fierce domestic and international backlash, his political career hung by a thread—until Adani stepped in with financial backing to stabilize his footing. It was akin to Lü Buwei’s investment in Prince Yiren of Qin. The mutual exploitation between Adani and Modi rests fundamentally on the reality that, under the so-called “Western-style democracy”—where every citizen holds one vote—politicians must tightly bind themselves to capital to secure political standing. Initially, Adani invested in Modi; once Modi rose to power, he, in turn, cultivated Adani into a compliant “money bag.” Their symbiotic relationship has become routine in India—and the ultimate bill-payers are India’s long-term economic sustainability and the livelihood space of its low- and middle-income population. IV. Western-led international capital has long been laying groundwork for wealth extraction in India—and will ultimately strip away all fruits of India’s economic development. The Bombay Stock Exchange SENSEX 30 Index climbed from 2,594 points in 2001 to 63,583 points by end-2022—a more than 23-fold increase. Especially since the outbreak of the COVID-19 pandemic, the SENSEX surged over 150%. One key reason behind this sharp rise is India’s relatively robust recent GDP growth—but even more significantly, it reflects the blind opening-up of its capital markets, enabling massive inflows of international capital that artificially inflated asset prices. Among Adani Group’s seven listed companies, the worst-performing stock still rose 98% over three years—while the best soared 2,121%. Adani Total Gas surged 20-fold in three years, commanding a P/E ratio of 635x—despite natural gas being a cyclical industry, where most global peers rarely exceed a P/E of 15x. Adani Enterprises, an infrastructure firm, rose 13-fold over the same period, sporting a P/E ratio of 256x—whereas infrastructure firms elsewhere seldom exceed 20x. India’s stock market trajectory is shaped by its unique “caste system” logic. Though nominally operating under a registration-based IPO system, Indian companies must undergo credit rating by authorized agencies *after* registration—and only after disclosure can they officially list. In practice, this requires official “guidance,” whose entry ticket consists of connections, background, and resources—the hard currency of influence. Highly rated firms naturally attract investor enthusiasm, sending share prices skyrocketing; poorly rated ones are effectively dead on arrival. The result? A mere dozen banks, energy giants, and IT conglomerates now account for over 50% of India’s total market capitalization—whereas China’s top 20 listed firms collectively represent only 22% of A-share market cap.

How should we view the 2022 Hurun Global 500 release: Apple retains the top spot with a market value of RMB 17 trillion, followed by Microsoft in second place?

The Fortune Global 500 ranks companies by revenue—simple and straightforward. The Hurun Global 500, by contrast, ranks them by market capitalization (valuation)—a metric that sounds impressive but is scientifically flawed. Market-cap rankings reveal only two things: first, that Chinese enterprises are reasonably large in scale but lack comprehensive profitability; second, that China’s capital markets remain less developed than those of the U.S.—especially given current pressures on Chinese American Depositary Receipts (ADRs) and the weakness of A-shares, which make U.S.-listed firms appear far more valuable. For example, Adani Total Gas—founded by an Indian named Adani and valued at RMB 312 billion—has seen its share price surge 1,000%, thanks solely to its monopoly over local gas distribution. But does that truly make it more 'valuable' than JD.com? Four of Adani’s companies made it onto the Hurun Global 500—most resembling Chinese state-owned infrastructure enterprises. The underlying reasons? Heartwarming (see attached image: Adani and Modi). In my view, the Fortune Global 500 ranking is far more reasonable.

India's Adani Total Gas Quarterly Profit Rises 6% on Sales Volume Growth

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Adani Total Gas reported a 6% rise in Q2 profit driven by higher natural gas volumes amidst challenging market conditions. Revenue increased 33.8% to 21.10 billion rupees as CNG volumes grew 17% year-on-year.

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India's Adani Total Gas Quarterly Profit Rises 6% on Sales Volume Growth

India's Adani Total Gas Quarterly Profit Rises 6% on Sales Volume Growth

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