LIC says made investments in Adani firms independently, after detailed due diligence
New Delhi (PTI): Life Insurance Corporation of India (LIC) on Saturday said its investments in Adani group companies have been made independently and in accordance with its board-approved policies, following detailed due diligence.
"Department of Financial Services (in the Union Finance Ministry) or any other body does not have any role in such (investment) decisions," LIC said in a statement posted on X.
India's largest insurer has, over the years, made investment decisions across companies based on fundamentals and detailed due diligence. Its investment value in India's top 500 companies has grown 10-fold since 2014 -- from Rs 1.56 lakh crore to Rs 15.6 lakh crore -- reflecting strong fund management.
"The investment decisions are taken by LIC independently as per Board-approved policies after detailed due diligence," LIC said.
"LIC has ensured the highest standards of due diligence and all its investment decisions have been undertaken in compliance with extant policies, provisions in the Acts and regulatory guidelines, in the best interest of all its stakeholders."
The statement was in response to a report in The Washington Post alleging officials orchestrated a plan to steer LIC into investing in the Adani group earlier this year, when the ports-to-energy conglomerate was facing a debt pile and scrutiny in the US.
The report highlighted LIC's May 2025 investment of USD 570 million in Adani Ports & SEZ (APSEZ), which holds the highest 'AAA' credit rating in India.
LIC said the Department of Financial Services or any other body does not have any role in its investment decisions, and the report carries statements "with the intentions to prejudice the well-settled decision-making process of LIC and also to tarnish the reputation and image of LIC and the strong financial sector foundations in India."
The insurer is not a small, single-purpose fund but India's largest institutional investor with over Rs 41 lakh crore (over USD 500 billion) in assets. It invests across 351 publicly listed stocks (as of early 2025) spanning virtually every major business group and sector.
LIC also holds substantial government bonds and corporate debt. Its portfolio is highly diversified, spreading risk.
LIC's exposure to the Adani group is less than 2 per cent of the conglomerate's total debt, helmed by India's second-richest man, Gautam Adani.
Global investors like US’ largest funds BlackRock, Apollo, Japan's largest banks Mizuho, MUFG, and Germany's second largest bank DZ Bank have also invested in Adani debt in recent months, reflecting global confidence in the group.
Sources said Adani's total debt of Rs 2.6 lakh crore is backed by Rs 90,000 crore in annual operating profit and Rs 60,000 crore in cash. This means Adani could knock off its entire debt in under three years if it paused new infrastructure investments.
On the equity side, Adani is not LIC's largest holding — Reliance Industries Ltd., ITC, and the Tata Group are.
LIC owns 4 per cent (Rs 60,000 crore) of Adani stocks versus 6.94 per cent (Rs 1.33 lakh crore) in Reliance, 15.86 per cent (Rs 82,800 crore) in ITC Ltd, 4.89 per cent (Rs 64,725 crore) in HDFC Bank, and 9.59 per cent (Rs 79,361 crore) in SBI. LIC holds 5.02 per cent of TCS worth Rs 5.7 lakh crore.
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India proposes preferential trade agreement with Mexico to deal with high tariffs
New Delhi (PTI): India has proposed a preferential trade agreement (PTA) with Mexico to help domestic exporters deal with the steep tariffs announced by the South American country, a top government official said on Monday.
Mexico has decided to impose steep import tariffs - ranging from about 5 per cent to as high as 50 per cent on a wide range of goods (about 1,463 tariff lines) from countries that do not have free trade agreements with Mexico, including India, China, South Korea, Thailand and Indonesia.
Commerce Secretary Rajesh Agrawal said that India has engaged with the country on the issue.
"Technical level talks are on...The only fast way forward is to try to get a preferential trade agreement (PTA) because an FTA (free trade agreement) will take a lot of time. So we are trying to see what can be a good way forward," he told reporters here.
While in an FTA two trading partners either significantly reduce or eliminate import duties on maximum number of goods traded between them, in a PTA, duties are cut or removed on a limited number of products.
Trading partners of Mexico cannot file a compliant against the decision on imposing high tariffs as they are WTO (World Trade Organisation) compatible.
The duties are within their bound rates, he said, adding that their primary target was not India.
"We have proposed a PTA because its a WTO-compatible way forward... we can do a PTA and try to get concessions that are required for Indian supply chains and similarly offer them concessions where they have export interests in India," Agrawal said.
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Citing support for local production and correction of trade imbalances, Mexico has approved an increase in MFN (most favoured nation) import tariffs (5-50 per cent) with effect from January 1, 2026 on 1,455 tariff lines (or product categories) within the WTO framework, targeting non-FTA partners.
Preliminary estimates suggest that this affects India's around USD 2 billion exports to Mexico particularly -- automobile, two-wheelers, auto parts, textiles, iron and steel, plastics, leather and footwear.
The measure is also aimed at curbing Chinese imports.
India-Mexico merchandise trade totalled USD 8.74 billion in 2024, with exports USD 5.73 billion, imports USD 3.01 billion, and a trade surplus of USD 2.72 billion.
The government has been continuously and comprehensively assessing Mexico's tariff revisions since the issue emerged, engaging stakeholders, safeguarding the interests of Indian exporters, and pursuing constructive dialogue to ensure a stable trade environment benefiting businesses and consumers in both countries.
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Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai has said that Mexico's decision is a matter of concern, particularly for sectors like automobiles and auto components, machinery, electrical and electronics, organic chemicals, pharmaceuticals, textiles, and plastics.
"Such steep duties will erode our competitiveness and risk, disrupting supply chains that have taken years to develop," Sahai said, adding that this development also underlines the little urgency for India and Mexico to fast-track a comprehensive trade agreement.
Domestic auto component manufacturers will face enhanced cost pressures with Mexico hiking duties on Indian imports, according to industry body ACMA.
