President Donald Trump has ordered a pause on enforcing the Foreign Corrupt Practices Act (FCPA), a 47-year-old law that prevents businesses with US ties from bribing foreign officials. The law had been used against India’s Adani Group under the Biden administration.
Trump defended the decision, calling the FCPA a “disaster”, claiming it discouraged US businesses from expanding overseas. His executive order directs the US Attorney General to review all ongoing FCPA cases.
Adani Group’s Alleged FCPA Violation
The Adani Group, India’s largest diversified business conglomerate, was previously accused of a $250 million bribery scheme related to solar power contracts. However, the company denied these allegations.
Following the suspension of the FCPA, Adani Group stocks soared, with Adani Enterprises Ltd leading at 4.28% gain. Other subsidiaries, including Adani Power, Adani Green Energy, and NDTV, also saw a surge.
Political Reactions & US-India Relations
A group of six US Congressmen criticized the Biden administration’s actions, calling them a “misguided crusade” that risked damaging US-India relations. They argued that since the alleged bribery took place in India, it should have been handled by Indian authorities rather than the US Department of Justice (DoJ).
What This Means for Global Business
Trump’s move signals a shift in US policy, removing restrictions for American firms dealing with foreign governments. While some argue this will boost economic ties, others fear it could weaken global anti-corruption efforts.
