LIC's Massive Investments: Who Are the Top Beneficiaries?
LIC's Investment Landscape
New Delhi: The Life Insurance Corporation of India (LIC) has made significant investments, with a staggering Rs 88,404 crore allocated to the Tata Group. Following closely are HDFC Bank with Rs 80,843 crore and Reliance Group, which received Rs 60,065.56 crore, as disclosed by the Minister of State for Finance, Pankaj Chaudhary, in a written statement to Parliament.
The Adani Group has drawn in Rs 47,633.78 crore, while State Bank of India (SBI) has attracted Rs 46,621.76 crore from LIC, according to the minister's report in the Rajya Sabha.
Chaudhary noted that LIC has invested over Rs 5,000 crore in 35 domestic companies or groups, totaling an impressive Rs 7.87 lakh crore.
The minister also provided a list of major business groups where LIC's total investment exceeds Rs 5,000 crore, which includes L&T, Unilever, IDBI Bank, Mahindra & Mahindra, and Aditya Birla.
In these top five groups, LIC's exposure amounts to Rs 3.23 lakh crore, compared to the overall Rs 7.87 lakh crore across 35 companies.
He emphasized that LIC operates under a board-approved investment policy that serves as a comprehensive framework for all investment activities conducted by the insurance company's investment department.
Investment decisions are made by the Investment Committee, which is a sub-committee of the Board, consisting of the CEO & MD, other MDs, and Independent Directors, overseeing all equity and debt investments.
All investment operations adhere to a 'Standard Operating Procedure' (SOP) that has been sanctioned by the Investment Committee and is reported to the board. This SOP is reviewed annually by LIC and updated as needed to align with regulatory standards.
LIC's investment decisions are executed with rigorous due diligence, risk evaluation, and compliance with fiduciary responsibilities, governed by the Insurance Act of 1938 and regulations from the Insurance Regulatory and Development Authority of India (IRDAI), Reserve Bank of India (RBI), and Securities and Exchange Board of India (SEBI) as applicable.
As of September 2025, LIC's investments in seven sectors, including cement, FMCG, ports & logistics, and news & broadcasting, totaled Rs 2,27,327.84 crore.
In response to another inquiry, Chaudhary stated that there are currently no plans for a farm debt waiver being considered by the government.
Additionally, he explained that various domestic and international factors influence the exchange rate of the Indian Rupee (INR), such as the Dollar Index, capital flow trends, interest rates, crude oil prices, and the current account deficit.
The depreciation of the INR during the financial year 2025-26 has been affected by an increase in the trade deficit and ongoing developments in India's trade agreement with the US, coupled with weak capital account support.
While currency depreciation may boost export competitiveness, it can also lead to higher prices for imported goods.
However, the overall effect of exchange rate depreciation on domestic prices is contingent on how international commodity prices are passed on to the local market.
Moreover, imports are influenced by various factors, including international commodity demand and supply, the nature of tradable goods (essential vs. luxury), freight costs, and the availability of substitute products.
Thus, the impact of exchange rate fluctuations on import costs and, consequently, on domestic inflation and the broader economy cannot be easily isolated.
Chaudhary concluded by stating that the value of the INR is determined by market forces, with no specific target or range.