In recent news, two names, LIC and Adani, came into limelight. A big question arose: Did the Indian government put pressure on LIC to invest in Adani Group? The question sparked loud debate online, especially after a report by The Washington Post. Many leaders of India also posted about this.
It is important to understand the whole story. We have to see what actually happened and separate the facts from the claims. Did Adani get any help from the government? How much did LIC actually invest? Is this kind of investment normal, or is there something wrong? And most importantly, is LIC trying to save Adani, or is it something else? Let’s get to the bottom of it.
The Washington Post’s Claims
The controversy began with a report by The Washington Post. This news organization published a report on October 24, 2025. He claimed that the Indian government had made a plan in May 2025. In this plan, LIC was reportedly to invest about $3.9 billion (about ₹33,000 crore) in Adani Group. The Washington Post said that this proposal was made by officials of the Financial Services Department of the Finance Ministry. NITI Commission and LIC were also reportedly part of this plan.
The two main goals of the said plan
The report stated two main goals of this proposed investment:
- Showing trust: Expressing trust in Adani Group.
- Attracting others: Encouraging other investors to invest money in Adani as well. This will assure them that it is safe to invest in Adani.
The Washington Post reported that the plan came at a time when Adani Group was facing debt problems. The group was also under close surveillance in the United States.
Adani Ports Bond Issue
In May 2025, Adani Ports issued bonds worth about ₹5,000 crore. LIC was the investor of these bonds. The Washington Post claimed that it got this information from a secret internal document. He said that only he had this document. As of October 27, 2025, The Washington Post has not shared any evidence such as screenshots or the document itself.
 Strong Denial Of LIC
LIC immediately responded to The Washington Post’s report. He rejected this outright and described the claims as “false, baseless and far from the truth”. LIC issued a statement saying that no such document or plan was ever made. He said that no one asked LIC to invest in Adani.
Free decisions
LIC made it clear that all its investment decisions are taken freely. These decisions are taken as per the policies decided by LIC’s own board. LIC also clarified that the Department of Financial Services or any other government institution does not influence its investment options. LIC suggested that these allegations were made with the aim of raising doubts about its long-standing, correct investment practices. He also said that the purpose of these allegations is to harm the good image of India’s financial system.
Adani Group’s reply
Adani Group CFO, Jugeshinder Singh also talked about this. He took a jibe at The Washington Post by posting on X. He said The Washington Post’s writing about finance is like me and Jeff Bezos talking about hair growing. It was a mocking jibe at the credibility of the report.
Understanding The Facts: LIC’s Real Investments
Now, let’s look at the real numbers and facts.
LIC’s investment in Adani
According to a report in The Economic Times, LIC holds about 4% of Adani Group shares. This stake is worth about ₹30,000 crore. However, this is not LIC’s biggest investment till date.
Comparison of Adani with other big holdings
LIC has invested much more than this in many other big Indian companies. Here’s a comparison:
- Reliance Industries: LIC owns 6.94% stake, worth ₹1.33 lakh crore. This is more than double LIC’s investment in Adani.
- ITC: LIC owns 15.86%, worth about ₹82,800 crore.
- HDFC: LIC owns 4.89%, worth ₹64,725 crore.
- SBI: LIC’s stake is 9.59%, worth about ₹79,000 crore.
- TCS (Tata Consultancy Services): LIC owns 5.02% stake, worth a whopping ₹5.5 lakh crore.
These figures clearly show that Adani is not the largest holding of LIC. LIC’s largest investments are in well-known groups like Reliance, ITC, Tata Group and SBI.
Why Does LIC Invest So Much?
LIC is India’s largest institutional investor. Its job is to manage the money of its policyholders and generate returns for them.
A diversified investment portfolio
LIC invests in at least 350 publicly listed stocks. These investments are spread in almost every sector of the economy. LIC invests its money in many companies and sectors. This strategy helps in managing risk. Its portfolio also includes government bonds and corporate debt. Since 2014, LIC’s investment in India’s top 500 companies has increased tenfold. It started from about ₹1.56 lakh crore and now it is about ₹15.5 lakh crore.
Scale of annual investment
Economic Times also reported that LIC invests about ₹5.5 lakh crore every year. The ₹is less than 1% of the total annual investment of 33,000 crore LIC reported in The Washington Post. Investing is one of the main ways for insurance companies to earn money. This helps them fulfill the promises made to the policyholders.
Global Investment In Adani
It is important to keep in mind that LIC is not the only investor investing in Adani Group companies. Many global insurance companies and investment firms have also invested.
Timeline of recent investments
Let’s look at the timeline of recent Adani investments:
-  June 2025: LIC invests ₹5,000 crore in Adani Ports.
- July 2025: Just a month later, a US company, Ethel Insurance, invested in Mumbai International Airport. It was about ₹6,500 crore. Many other international insurance firms also joined this investment.
Large scale global support
An August report by S & P Global Ratings revealed that Adani Group entered into an agreement for a credit facility worth over $10 billion in the first six months of 2025. These facilities were for companies like Adani Ports, Adani Green Energy, Adani Enterprises and Adani Energy Solutions. This is a huge amount.
Many big global funds also invest in Adani debt. These include:
- US funds: BlackRock, Apollo.
- Japanese banks: MUFG.
- German banks: DZ banks.
This raises a question: If so many global companies and insurance firms are investing, then why is only LIC being targeted?
Adani’s Debt And LIC’s Exposure
Let us examine Adani’s total debt and what is LIC’s share in it.
LIC’s small share in Adani’s debt
According to The Economic Times, Adani Group’s total debt is about ₹2.5 lakh crore. LIC’s investment is less than 2% of Adani Group’s total debt. This is a very small percentage.
Adani’s financial strength
The Economic Times also reported that Adani’s annual operating profit is ₹90,000 crore. He also has about ₹60,000 crore cash. These figures show that if Adani decides not to start new infrastructure projects today, he can repay his entire loan in about three years. These figures show that LIC’s money in Adani is a normal investment made in a private company, as it does in other companies also.
What Experts Say
Experts have shared their views on this matter.
No government interference
Former LIC Chairman Siddharth Mohanty said that the government never interferes in LIC’s investment decisions. This applies both directly or indirectly. He described The Washington Post’s report as a “misguided story”. He also said that unverified content should be removed.
Attraction of infrastructure investment
Analysts believe that insurance companies around the world are increasing their investment in infrastructure. These investment stables give long-term returns. In recent years, there has been a lot of investment in India’s infrastructure sector, in which Adani Group has played an important role.
A different perspective
However, Hemandra Hazari, a Mumbai-based analyst, had a different perspective. He suggested that LIC’s investment indicates government support.
General process of institutional investing
An expert said that hundreds of companies get investment from LIC. Many of these are private companies. Other insurance companies also have large portfolios of investments in private firms. There is nothing unusual in this. Companies in India operate under the Companies Act 2013. Investments are made according to rules set by regulatory bodies such as IRDA. Insurance companies have their own investment managers. These managers evaluate companies and decide where to invest. Investing in bonds of private or public companies is a standard practice. An expert reported that Adani Group has faced some controversies since 2023. There are no such disputes associated with companies like Reliance, Tata and ITC.
People’s concern and transparency
LIC is a very large company with more than 90,000 employees. It has more than 29 crore policy holders. This number is more than the population of many countries. The amount of money LIC collects from policy holders is more than the GDP of many countries. Since this money belongs to the common people, it is natural for them to be worried. When concerns arise, it is very important to discuss them openly. The discussion provides academic, political and financial information. This helps not only the company concerned but also others to learn.
Conclusion
It is a normal process for institutional investors like LIC to invest in big companies. Large holders like LIC, foreign funds and other insurance companies maintain different types of portfolios. LIC invests about ₹5.5 lakh crore every year. Its main goal is to give the best returns to its policyholders while keeping their money in mind. Infrastructure bonds are liked by these investors because they give stable returns. Therefore, LIC’s investment in Adani Ports’ high-rated bonds is probably a part of its daily investment plan. LIC has also invested in other big business groups like Tata Group and Aditya Birla Group. This shows that the investment made in Adani is probably another part of LIC’s normal strategy to diversify its portfolio.
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