NEW DELHI, India — Leading market and political analysts on Monday questioned the timing of a recent foreign media report alleging government pressure on the Life Insurance Corporation of India (LIC) to invest in the Adani Group, describing it as a calculated attempt to stir controversy before the Bihar state elections.
The report, published by a U.S.-based outlet, claimed that the Indian government had “pressured” LIC to invest up to $3.9 billion in the Adani conglomerate, including about $568 million (Rs 5,000 crore) in May 2025. Experts, however, say the narrative appears politically motivated at a time when India’s economy is showing strong growth and investor confidence remains robust.
“Politicising investment decisions by India’s largest insurer does not serve the interests of investors or the broader economy,” said Shriram Subramanian, Founder and Managing Director of InGovern Research Services. “When foreign investors can invest in Indian companies and earn profits, why can’t LIC do the same?”
Analysts noted that foreign institutional investors continue to profit from Indian infrastructure firms, making it inconsistent to single out LIC’s investments for criticism.
Political analyst Tehseen Poonawalla also denounced what he called a pattern of targeted narratives against the Adani Group, recalling earlier short-selling reports that were later discredited. “This hit-and-run policy against Indian companies can harm the country’s economy,” he said.
LIC currently manages assets worth Rs 57 lakh crore, with Rs 14.5 lakh crore in equities. Its total exposure to the Adani Group stands at around Rs 56,000 crore—less than one percent of its overall portfolio. “LIC has only gained from its investment in Adani Group, not lost,” Poonawalla added.
In response, LIC has issued a formal rebuttal to The Washington Post article, calling the allegations “false, baseless, and far from the truth.” (Source: IANS)
