New Delhi, India, April 4 (PTI) Life Insurance Company (LIC) said on Friday that it has been operating in a competitive market for 25 years and has not received any special treatment from the government because it rejected the report of the U.S. Trade Representative.
“We strongly believe that USTR’s view is based on an incomplete understanding of Indian insurance regulations and the operation of LICs,” the insurer said in a statement.
The statement said that over the past 25 years, LIC operates in a competitive market with 24 private life insurance companies, adding that it is regulated by Irdai and Sebi and is not subject to special treatment by the government or any regulatory body.
Before the Donald Trump administration’s reciprocity tariffs on Wednesday, the U.S. Trade Representative (USTR) said in a report that in addition to imposing non-tariff barriers, India maintained “high” import tariffs on a wide range of U.S. goods such as agricultural goods, pharmaceutical formulas and alcoholic beverages, such as agricultural goods, pharmaceutical formulas and alcoholic beverages.
The report also said that the LIC received favorable treatment from the government, leaving foreign insurers without competition in the Indian market.
“Many customers choose to purchase political policies provided to private insurance companies, thus providing an unfair competitive advantage to LICs,” the 2025 National Trade Estimation Report (NTE) report published by the USTR said.
However, the LIC clarified that the government and regulators treat it like any other insurance company.
It said: “We urge a more balanced and factual role and contribution to India’s financial inclusion and policyholder protection.”
The guarantee that when it was established in 1956 was a statutory provision aimed at building public confidence in the early stages of nationalization. It has never been called or used as a marketing tool, nor has it provided any improper advantage to LIC.
“LIC remains committed to maintaining the highest standards of governance, service and client trust,” said the company’s CEO & MD Siddhartha Mohanty.
The statement further stated that LIC’s leadership in the insurance sector owes its entirety to the trust of its policyholders, its commitment to excellent service, and its financial strength and transparency.
It added that with over 69 years of legacy, LIC continues to serve over 30 billion customers across India with dedication and professionalism.
As part of the mutual tariffs on higher tariffs on U.S. products imposed worldwide by about 60 countries, U.S. President Donald Trump announced Wednesday that India had reciprocal tariffs on 26 percent, saying the country was the “tariff king” that imposes tariffs on U.S. goods.
The move is expected to affect India’s exports to the United States. But experts say India is better than its competitors facing increased tax revenue.
In the United States, India’s trade surplus (the difference between imports and exports (the difference between imports and exports) in 2023-24 is US$35.32 billion. This is US$27.7 billion in 2022-23, US$32.85 billion in 2021-22, US$22.73 billion in 2020-21 and US$17.26 billion in 2019-20.
