Gautam Adani Foresees India’s GDP Growth Surge, Targets $25 to $30 Trillion Economy by 2050
Adani Group Poised to Lead India's Net Zero Journey with World's Largest Hybrid Solar-Wind Project
Mumbai : Gautam Adani, the Chairman of Adani Group, delivered a visionary address to shareholders at the Annual General Meeting (AGM) on Tuesday, expressing his optimism for India’s economic trajectory and the pivotal role of the Adani Group in the nation’s growth story. He anticipates India’s GDP to skyrocket, with the country becoming a $25 to $30 trillion economy by 2050, propelling the stock market capitalization to over $40 trillion, approximately ten times its current levels.
Highlighting India’s progress since independence, Adani noted the significant acceleration in GDP growth over the years. He pointed out that it took 58 years to reach the first trillion dollars of GDP, 12 years for the second trillion, and just 5 years for the third trillion. He also reflected on the remarkable journey of the Adani Group, which, from its inception over three decades ago as Adani Enterprises (then known as Adani Exports), has grown into one of the largest conglomerates in the country.
Addressing the recent challenges faced by the Adani Group, Adani spoke candidly about a US-based short-seller’s report published on the eve of India’s Republic Day. The report contained a combination of targeted misinformation and discredited allegations dating back to 2004-2015, aimed at damaging the group’s reputation and driving down stock prices. Despite a fully subscribed Follow-on Public Offering (FPO), the group decided to protect investors’ interests by withdrawing the offering and returning the funds.
In response to the allegations, the Hon’ble Supreme Court of India appointed an Expert Committee known for its independence and integrity to investigate the matter. The committee’s report, made public in May 2023, found no regulatory failure and praised the Adani Group for its transparency and adherence to disclosure standards. The report also highlighted credible charges of targeted destabilization of Indian markets by vested interests.
Remaining confident in the group’s governance and disclosure standards, Adani emphasized that during the crisis, Adani Group raised several billions from international investors without any credit rating downgrades from Indian or foreign credit agencies.
Speaking about India’s economic future, Adani stated that the country, already the world’s fifth-largest economy, is poised to become the world’s third-largest economy well before 2030. He firmly believes that by 2050, India will rise to become the world’s second-largest economy. Adani attributed this anticipated growth to India’s stable government, implementation of structural reforms, demographic advantages, and the continuous expansion of internal demand.
Discussing the Adani Group’s key achievements, Adani celebrated the company’s remarkable financial performance for FY 2022-23. The Group’s total EBITDA grew by 36% to reach Rs 57,219 crore, total income surged by 85% to reach Rs 2,62,499 crore, and total PAT increased by 82% to Rs 23,509 crore. The group’s net Debt to run rate EBIDTA ratio improved from 3.2x to 2.8x.
Adani Enterprises showcased its incubation capabilities, with new businesses contributing a significant 50% of its EBITDA in FY23. Notable projects such as the Navi Mumbai Airport and Copper Smelter are progressing on schedule. Additionally, the Group’s ventures, including NDTV and AdaniConneX, are set to be game-changers in their respective industries.
Emphasizing the Group’s commitment to green power, Adani Green Energy Limited commissioned the world’s largest hybrid solar-wind project of 2.14 GW in Rajasthan, positioning the Adani Group at the forefront of India’s journey towards a net-zero future.