A New India
Chapter 179 - 179: Indian Insurance Holding

The vision for Indian Insurance Holding was clear in Rohan mind, it was to act as platform to bring together various financial institutions from all across the world and then make them invest in India.

A path of development that is same as China, it just it is more earlier and more mature because he already knows the pro and cons, so he can prepare himself and the government for such changes.

A knock on the door broke his thoughts

Harish Patel, the Finance Minister, entered, followed by a group of economists and financial advisors, each carrying stacks of files.

They all knew why they were here, this was no ordinary meeting.

They have already received and reviewed the proposal and were shocked to core because this was unprecedented in the financial markets yet at the same time excited because if this worked could solve the biggest problem for India.

Compared to them Harish was already familiar with the plan, having discussed it with Rohan a week ago during their conversation on the Skill Enhancement Initiative.

But today, they would dive into the complexities and challenges of bringing the plan to life.

Rohan stood up, welcoming his team with a curt nod, his eyes sharp with focus. "Gentlemen, thank you for coming on such short notice."

Vikram Sharma, a senior economist who had previously worked with India's planning commission, took a seat beside Harish.

Next to him was Anil Gupta, a financial strategist who had advised the government during the formation of HAL.

Both men exchanged glances before turning their attention to Rohan.

"I'm sure you've all had a chance to review the proposal," Rohan began, tapping the black folder on his desk labeled Indian Insurance Holding. "We will create Indian Insurance Holding and then transfer 100% stake of LIC here and sell 10-20% of IIH to raise money. We need to raise $2 billion USD by sellimg shares. We are not selling LIC shares but ISH which has 100% of LIC shares.

This isn't just about getting money, we need it to drive our defense projects, expand infrastructure, and fuel our industrial growth. But before we move forward, we need to discuss the financial challenges."

Harish, already familiar spoke up. "Prime Minister, we're all aligned on the goal, but raising this amount of money isn't just about selling shares. There are several complications that we need to address."

Vikram leaned forward, his voice calm but deliberate. "The first challenge is valuation. LIC's monopoly gives us an advantage, but the market conditions can fluctuate. The global economy is unstable, and while LIC is strong, we need to ensure that we're selling at the right price."

Rohan nodded, acknowledging the concern. "That's why we won't go through the Bombay Stock Exchange. We need to attract global financial institutions to drive the price higher. The auction will create competition."

"But even with competition," Anil Menon interjected, "we have to be careful about perception. Selling off a chunk of LIC to foreign investors might be seen as us handing over a national asset. We need to control the narrative, or we risk public backlash."

Rohan looked at Anil, considering his point carefully. "First of all we are not directly selling LIC shares but IIH shares and to make sure we don't break the balance we're keeping 80% under government control. We're not losing LIC, we're leveraging it. We'll need a public relations campaign to make that clear."

Vikram nodded, but added more problems "There's also the question of timing. If we rush this auction, we could end up undervaluing LIC. But if we wait too long, the global financial climate could shift. We need to find the right balance, get it to market when demand is high, but before anything happens that might weaken investor confidence."

Harish had been silent, listening closely. "And then there's the regulatory aspect. Opening up LIC's shares to foreign institutions will require approval from multiple regulatory bodies, both here and abroad. We'll need to move around that carefully, or we could face delays."

Rohan leaned back in his chair, his mind running through the various points raised.

He knew this wasn't going to be simple.

"Let's break it down," Rohan said, his tone steady. "First, on valuation. LIC is growing every day. With more Indians investing in life insurance policies, its assets are rising steadily. That's what makes this auction attractive. We don't need to wait, we've got the momentum now.

If we wait too long, we risk missing this wave of growth."

Anil nodded, though his expression remained thoughtful. "That's true. But we'll need to present LIC's financials in a way that reflects that growth to potential investors. They need to see the trajectory clearly."

Vikram added, "We'll need a team dedicated to preparing those financial reports, something that highlights LIC's growth and long-term stability."

Rohan turned to Harish, who had remained quiet. "What about the regulatory challenges?"

Harish sighed slightly, rubbing his temple. "It'll be a process, but it's manageable. We'll need to ensure compliance with foreign investment laws, both in India and in the countries where these institutions are based. But we've done it before, during the formation of HAL. We can do it again."

Rohan smiled faintly, knowing Harish would find a way to walk through the regulatory maze. "Good. We'll get a legal team on it right away."

The room fell into a brief silence as everyone processed the conversation so far.

This wasn't just about selling shares, it was about orchestrating a financial masterpiece, one that could set the foundation for India's next phase of growth.

As the meeting continued, Rohan noticed that the tension in the room had started to shift.

What had initially been a series of concerns and obstacles was now evolving into a strategic discussion.

Vikram leaned forward again. "Prime Minister, what about the global financial institutions? Have we started reaching out?"

Rohan nodded. "We've already sent preliminary letters to major financial players. Goldman Sachs, BNP Paribas, Barclays, and Dai-Ichi Life Insurance in Japan have all expressed interest. But that's just the start. We need to make sure they understand what's at stake. This isn't just another investment.

This is a chance to own a piece of the Indian insurance market, a growing market in a growing country."

He paused for a while and continued

"Also the most important part is once they enter the Indian Market they won't be able to ignore it. It's like once you go Indian you can't go american"

Hearing this everyone in the room laughed but unfortunately only Rohan was the one who truly understood the joke.

Anil then added, "The competition between those institutions will drive the price higher. But we need to emphasize LIC's monopoly in India. It's a safe investment. They need to know they're buying into a sure thing. Also we must be ready for any cooperation between companies to reduce the price as such practise are widely used but considering the environment right now I don't think this will be used.

Everyone wants more profit right now"

Harish raised a final point. "We also need to be clear about where the money is going. The public will want to know what we're doing with $2 billion or more USD. We need a plan for that. There is going to be a lot of scrutiny by Parliament and Opposition sir or whatever is left of them but still those young leaders will give you a tough battle"

Rohan smiled. "Dont worry about Parliament, that's already in place. The funds will be split between defense projects, infrastructure development, and industrial expansion. We'll make sure the public knows that this isn't just about raising money it's about building India's future."

Vikram chuckled softly. "Prime Minister, you've really thought this through, haven't you?"

"I had to," Rohan said, his tone serious. "This is bigger than just LIC. This is about India's position in the world. We need to show that we're not just a nation of farmers and laborers. We're a modern country, capable of financial innovation and industrial growth."

By the end of the meeting, everyone in the room was on board.

The plan was ambitious, but they all knew it could work.

The next steps were clear: finalize the legal framework, prepare LIC's financials, and get the global institutions lined up for the auction.

As the advisors and economists left the room, Rohan and Harish remained seated for a moment longer.

Harish looked at Rohan, a hint of a smile on his face. "You know, this could change everything. If this works, we'll have more than just $2 billion. We'll have international credibility."

Rohan leaned back in his chair, a sense of relief washing over him. "That's the idea. We're not just selling shares, Harish. We're setting the stage for a even bigger plan of mine to make India powerful"

Harish chuckled softly. "I'm beginning to see that. Let's make sure we don't trip on the stage."

Rohan's eyes glinted with determination. "We won't."