When we think of India’s biggest investors, names like Mukesh Ambani, Gautam Adani, Ratan Tata, and Radhakishan Damani usually come to mind. However, these prominent billionaires are not the largest institutional investors in India’s stock market. Surprised? The country’s largest institutional investor is, in fact, none other than the President of India.
Yes, you read that correctly! The President of India holds an unparalleled position as the biggest investor in the nation’s stock market, with assets exceeding a staggering Rs 43 lakh crore. This vast wealth comes from the President’s stake in over 75 government-owned companies, making the President’s Office the most significant institutional investor in the Indian market.
How Is the President of India the Largest Investor?
The President of India, being the head of state, holds a unique position that is not just ceremonial but also one of great financial influence. The President’s Office manages the assets of the central government, which includes shares in numerous public sector companies. This vast portfolio is primarily composed of shares in government enterprises, giving the President an unrivaled stake in the Indian stock market.
These stakes are spread across key public sector companies such as the Life Insurance Corporation of India (LIC), the State Bank of India (SBI), Oil and Natural Gas Corporation (ONGC), and several others. Collectively, the assets held by the President in these companies are valued at more than Rs 43.41 lakh crore.
Key Companies in the President’s Portfolio
The President of India holds shares in over 75 public sector companies, spanning across various sectors such as banking, energy, and infrastructure. Let’s take a look at some of the key companies in which the President has a significant stake:
- Life Insurance Corporation of India (LIC) – Rs 5,92,753.33 crore
- State Bank of India (SBI) – Rs 4,04,680 crore
- Oil and Natural Gas Corporation (ONGC) – Rs 2,18,746 crore
- National Thermal Power Corporation (NTPC) – Rs 2,13,302 crore
- Hindustan Aeronautics Limited (HAL) – Rs 2,03,937 crore
- Coal India Limited (CIL) – Rs 1,93,447 crore
- Indian Railway Finance Corporation (IRFC) – Rs 1,71,632 crore
- Power Grid Corporation – Rs 1,61,796 crore
- Indian Oil Corporation (IOC) – Rs 1,22,645 crore
- Bharat Electronics Limited (BEL) – Rs 1,03,615 crore
These numbers alone reflect the massive financial clout that the President holds in India’s stock market.
Managing Government Assets: The Role of the President’s Office
It’s essential to understand that the President’s vast portfolio of assets doesn’t make them a personal investor but rather the official custodian of the government’s wealth. The President’s Office oversees and manages government properties and investments in various public sector undertakings (PSUs).
These PSUs play a critical role in the country’s economy, and through them, the government holds a significant stake in industries ranging from banking and insurance to energy and manufacturing. The President’s investments help to ensure that these vital sectors remain under the public sector, allowing the government to have a stake in shaping their growth and progress.
The President’s Stake in Maharatna, Navratna, and Miniratna Companies
The companies in which the President holds shares are classified into three categories: Maharatna, Navratna, and Miniratna. These designations are given based on their size, revenue, and overall importance to the Indian economy.
Maharatna Companies
The Maharatna companies are the largest and most profitable PSUs in India. These companies have extensive operations and contribute significantly to the country’s GDP. The President holds shares in the following 13 Maharatna companies:
- Bharat Heavy Electricals Limited (BHEL)
- Bharat Petroleum Corporation Limited (BPCL)
- Coal India Limited (CIL)
- GAIL India Limited
- Hindustan Petroleum Corporation Limited (HPCL)
- Indian Oil Corporation Limited (IOCL)
- National Thermal Power Corporation (NTPC)
- Oil and Natural Gas Corporation (ONGC)
- Power Grid Corporation of India Limited
- Steel Authority of India Limited (SAIL)
- Oil India Limited (OIL)
- Power Finance Corporation (PFC)
- Rural Electrification Corporation Limited (REC)
Navratna Companies
Navratna companies, while smaller than Maharatna companies, still hold significant strategic and economic value. These companies have the autonomy to make critical investment decisions and expand their operations. Some of the major Navratna companies include:
- Bharat Electronics Limited (BEL)
- Container Corporation of India Limited
- Engineers India Limited
- Hindustan Aeronautics Limited (HAL)
- Mahanagar Telephone Nigam Limited (MTNL)
- National Aluminum Company Limited (NALCO)
- National Building Construction Corporation Limited (NBCC)
Miniratna Companies
Miniratna companies are smaller public sector companies but still play a crucial role in their respective industries. These companies have the autonomy to invest in projects and expand their operations without government approval. The President’s portfolio includes shares in the following Miniratna companies:
- Airports Authority of India (AAI)
- Antrix Corporation Limited
- Balmer Lawrie & Co Ltd
- Bharat Coking Coal Limited
- Bharat Dynamics Limited (BDL)
- Cochin Shipyard Limited (CSL)
- Garden Reach Shipbuilders & Engineers Ltd (GRSE)
- India Tourism Development Corporation Limited (ITDC)
- National Fertilizers Limited (NFL)
- Pawan Hans Helicopters Limited
The Strategic Importance of the President’s Portfolio
The President’s portfolio, which includes these Maharatna, Navratna, and Miniratna companies, is not just a source of immense wealth but also represents India’s strategic economic assets. These companies are crucial for the country’s infrastructure, defense, energy security, and industrial development.
For example, ONGC and Oil India Limited are key players in ensuring India’s energy independence, while companies like Hindustan Aeronautics Limited and Bharat Electronics Limited are critical for defense manufacturing.
Moreover, companies like SBI and LIC play a pivotal role in the financial ecosystem, providing essential banking and insurance services to millions of Indians.
The Unique Role of the President in India’s Economy
The President of India’s role as the largest institutional investor highlights the unique relationship between the Indian government and its public sector undertakings. These companies serve as the backbone of the Indian economy, providing essential services and driving growth in critical sectors.
By managing assets worth over Rs 43 lakh crore, the President ensures that these companies remain under public ownership and continue to contribute to the country’s economic progress.
