Experts Question Timing of Report on LIC’s Adani Investments, Call It Politically Motivated Ahead of Bihar Polls
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Top market experts and political analysts have raised concerns over the timing of a recent foreign media report alleging that the Indian government pressured the Life Insurance Corporation of India (LIC) to invest heavily in the Adani Group, suggesting it could be an attempt to stoke political controversy ahead of the Bihar elections.
The report, published by a US-based media outlet, claimed that the Indian government influenced LIC to invest up to $3.9 billion in Adani Group companies, including ₹5,000 crore ($568 million) in May 2025. However, Indian experts and officials have strongly refuted the claims, calling them “politically motivated” and “economically misleading.”
“Politicising LIC’s Investments Helps No One,” Says Governance Expert
Responding to the allegations, Shriram Subramanian, Founder and Managing Director of InGovern Research Services, told IANS that dragging LIC into political debates undermines public confidence in one of India’s most trusted financial institutions.
“When foreign investors can invest in Indian companies and earn profits, why can’t LIC do the same?” he questioned.
“Politicising investment decisions by India’s largest insurer does not serve the interests of investors or the broader economy.”
He added that the timing of such reports, when India’s markets are showing resilience and foreign inflows remain robust, appears to be a calculated move to trigger doubts about India’s economic governance.
Foreign Investors Profit, But LIC’s Moves Questioned
Experts also highlighted the inconsistency in the criticism. Foreign investors continue to benefit from Indian infrastructure firms, including those linked to the Adani Group. Yet, domestic institutions like LIC face scrutiny for making similar investment decisions.
Economists suggest that LIC’s investment portfolio is governed by long-term fundamentals, and the insurer operates under strict regulatory oversight by the Insurance Regulatory and Development Authority of India (IRDAI).
Tehseen Poonawalla: “Hit-and-Run Attacks Harm India’s Economy”
Political analyst Tehseen Poonawalla also condemned what he described as a recurring pattern of targeted campaigns against major Indian companies.
“This hit-and-run policy against Indian companies can harm the country’s economy,” Poonawalla said, drawing parallels with earlier short-selling reports that were later proven to be baseless.
He added that LIC’s exposure to the Adani Group is less than 1% of its total portfolio and has been financially beneficial for the insurer.
“LIC manages assets worth ₹57 lakh crore, of which ₹14.5 lakh crore is in equities. Its total exposure to the Adani Group stands at about ₹56,000 crore — less than one per cent of its portfolio,” he explained.
“LIC has only gained from its investment in the Adani Group, not lost.”
LIC’s Official Response: “False, Baseless, and Far from the Truth”
The Life Insurance Corporation of India has officially rejected the claims made in The Washington Post report, describing them as “false, baseless, and far from the truth.”
In its statement, LIC reiterated that all investment decisions are made independently based on sound financial principles, risk assessment, and long-term returns for policyholders.
“LIC’s investments are made after careful evaluation of market conditions and company fundamentals. The allegations of external pressure are entirely untrue,” the statement read.
Industry experts note that the state-run insurer has maintained a track record of profitability, and its exposure to large corporate groups, including Adani, remains well within approved risk limits.
Political Timing Under Scrutiny
The release of the foreign report just weeks before the Bihar Assembly elections has raised eyebrows in political and economic circles alike. Analysts believe that raising controversies involving key Indian companies or financial institutions during election season has become a common tactic to influence voter sentiment.
While the Adani Group has not directly responded to the report, sources within the conglomerate said it continues to focus on growth, infrastructure expansion, and international partnerships amid renewed scrutiny.
India’s Markets Remain Stable
Despite the international report and subsequent political chatter, Indian equity markets have shown resilience, with no major impact on LIC or Adani Group share prices.
Economists suggest that India’s strong macroeconomic indicators — including rising GDP growth, robust foreign investment, and steady inflation — make the claims of systemic government interference implausible.
The controversy surrounding LIC’s alleged investments in the Adani Group once again underscores the intersection of politics and economics in India’s evolving financial landscape.
While the report’s claims have been firmly refuted by LIC and experts alike, the timing and tone of such narratives raise critical questions about the intent and influence of foreign media reporting on India’s domestic affairs.
As India prepares for crucial state elections, maintaining investor confidence and protecting institutional integrity remain key priorities for policymakers.