Targeted Attacks Label LIC’s Adani, Reliance Stakes As Risky

The debate around LIC’s investments has intensified as some groups label its exposure to major Indian companies as ‘risky.’ These campaigns target LIC along with conglomerates like Adani and Reliance.

They attempt to influence India’s largest financial institution through sustained media and social media pressure.

India faced similar disruptions between 2010 and 2013. Targeted campaigns against coal, power, energy and defence sectors triggered policy paralysis.

Companies like Coal India, NTPC, ONGC, BHEL and HAL struggled with stalled decision-making. Public-sector banks later recorded large NPAs because stalled projects could not generate returns.

Experts warn that hesitation by LIC today could delay long-term investments in infrastructure and capital markets.

Such delays could hurt India’s financial stability. LIC’s leadership believes the institution must stay firm to protect policyholders’ savings and support national growth.

LIC remains central to India’s financial ecosystem. It manages ₹55 lakh crore, making it the country’s largest financial institution.

Almost every Indian household has a connection with LIC. Any attack on its credibility affects public trust in national institutions.

Some groups circulate selective information about LIC’s holdings. They rarely mention that private players such as SBI Life, HDFC Life, HDFC, ICICI, Kotak and major mutual funds hold similar or larger exposures. Singling out only LIC creates confusion and unnecessary fear.

LIC follows strict investment norms. It cannot invest more than 1% of its total funds in any corporate group.

Every investment undergoes detailed checks, IRDAI regulations, board approvals and proxy advisor reviews. No individual officer or political figure can decide where LIC invests.

LIC invests across the Indian economy. It holds stakes in more than 300 major companies, including Adani, Reliance, Tata and Aditya Birla groups.

Its disciplined strategy helped its equity portfolio jump from ₹1.5 lakh crore in 2014 to ₹15.5 lakh crore today. Around ₹40 lakh crore stays in AAA-rated government securities and top-rated corporate assets.

Critics often point to LIC’s investments in the Adani Group. The facts tell a different story. Since 2017, LIC has invested about ₹31,000 crore in the group.

The value now stands near ₹65,000 crore. LIC also invested ₹5,000 crore in AAA-rated Adani bonds. Meanwhile, US insurers like Athene Life and MetLife invested ₹6,700 crore.

Indian banks like HDFC and global lenders such as MUFG, Mizuho and BNP Paribas also invested heavily. None of these institutions faced similar criticism.

LIC invests in infrastructure assets because they provide steady, predictable income. Airports, ports, power lines, logistics, rail and energy networks offer long-term stability.

This mirrors global insurance models. Warren Buffett’s Berkshire Hathaway generates nearly 20% of its profits from such assets.

Indian infrastructure players like Adani, Reliance and Tata operate in the same segments with high safety ratings.

Multiple experts warn that targeted attacks on LIC may destabilise India’s insurance sector.

Global insurers diversify into stable sectors, while many private Indian insurers remain heavily exposed to IT and banking, areas vulnerable to technological disruption and geopolitical shocks.

A major economic event in the future could strain insurers that lack long-term, stable assets.

LIC has protected policyholders since 1956. It absorbed losses in past decades from companies like Mallya’s firms or Gitanjali Gems but never defaulted.

Since 2014, LIC has avoided major investment failures. Its disciplined approach helped its equity portfolio grow tenfold.

Industry voices argue that LIC invests where global insurers invest—and it does so with stricter rules and stronger safeguards.

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