Tata Group, Reliance, Adani among top 5 recipients of LIC's investment

The Life Insurance Corporation of India (LIC) has substantial investments in several prominent Indian companies, with the Tata Group receiving the largest allocation at Rs 88,404 crore. HDFC Bank follows with Rs 80,843 crore, and Reliance Group with Rs 60,065.56 crore, according to information provided to Parliament on Tuesday.

Minister of State for Finance Pankaj Chaudhary, in a written response to the Rajya Sabha, also noted that the Adani Group has received Rs 47,633.78 crore in investments from LIC, while SBI has attracted Rs 46,621.76 crore.

LIC's investments exceeding Rs 5,000 crore each are spread across 35 domestic companies or groups, totaling Rs 7.87 lakh crore. The minister also shared a list of other business groups with significant LIC exposure, including L&T, Unilever, IDBI Bank, M&M, and Aditya Birla Group.

The top five groups account for Rs 3.23 lakh crore of LIC's total investment of Rs 7.87 lakh crore in these 35 companies.

According to Chaudhary, LIC's investment decisions are guided by a board-approved investment policy. The Investment Committee, a sub-committee of the Board that includes the CEO & MD, MDs, and Independent Directors, makes all investment decisions related to equity and debt investments. He also stated that all investment activities adhere to a Standard Operating Procedure (SOP) approved by the Investment Committee and reported to the board. LIC reviews and revises this SOP annually to ensure compliance with regulatory requirements.

LIC's investment decisions are made after thorough due diligence, risk assessment, and fiduciary compliance, and are governed by the Insurance Act of 1938, as well as regulations issued by the Insurance Regulatory and Development Authority of India (IRDAI), the Reserve Bank of India (RBI), and the Securities and Exchange Board of India (SEBI).

As of September 2025, LIC's exposure in sectors such as cement, FMCG, Ports & Logistics, and News & Broadcasting amounted to Rs 2,27,327.84 crore.

In response to another question, Chaudhary clarified that the government is not currently considering any proposal for farm debt waivers.

Furthermore, Chaudhary explained that the exchange rate of the Indian Rupee (INR) is influenced by various domestic and global factors, including the movement of the Dollar Index, capital flows, interest rates, crude oil prices, and the current account deficit. He noted that the depreciation of the INR during the current financial year 2025-26 has been influenced by an increase in the trade deficit and the potential outcomes of India's trade agreement with the US.

He added that while currency depreciation can enhance export competitiveness, it may also increase the prices of imported goods. The overall impact on domestic prices depends on the extent to which international commodity prices are passed on to the domestic market. The impact of exchange rate movements on import costs, domestic inflation, and the economy is complex and depends on various factors, including the demand and supply of commodities, the nature of imports, freight costs, and the availability of substitute goods. The value of the INR is market-determined, without any specific target or band.