Temasek bets on India’s next decade, signals fresh $10 billion push despite portfolio dip

India may have seen its share in Temasek Holdings’ global portfolio decline in FY26, but the Singapore investment giant remains firmly bullish on the country, signalling plans to deploy around $10 billion over the next three years and even hinting at the possibility of exceeding that figure if right opportunities emerge.

“India has been our best-performing market over the last 10 years,” said Vishesh Shrivastav, Managing Director - India, Temasek Global Investments. India exposure has grown from about $10 billion a decade ago to nearly $42 billion today, highlighting the firm’s long-term conviction in the market. However, in the last one year its India exposure has come down. Shrivastav said the reduction in portfolio exposure was largely a mathematical outcome of Temasek’s blockbuster exit from Schneider Electric and did not reflect any weakening of confidence in India.

“We do not assess India through one-year investment cycles. Instead, we look at deployment opportunities across a multi-year horizon,” said Nishant Chandra, Managing Director - India, Temasek Global Investments. “The general zip code we position ourselves for is deploying around $10 billion over a three-year horizon,” he said, adding that the firm’s orientation towards India remains favourable and unchanged.

Unlike traditional private equity funds, Temasek invests directly from its balance sheet, giving it the flexibility to stay invested for much longer periods. The firm continues to hold significant stakes in companies such as Zomato and Policybazaar, years after their stock market listings. “For us, an IPO is not a must-exit event. It is simply another stage in the life cycle of a company,” Shrivastav said.

Temasek’s India portfolio remains anchored around three sectors — consumer & technology, financial services and healthcare, which together account for nearly 90 per cent of its investments. Recent investments such as Haldiram’s and CleanMax reflect its preference for market leaders operating in sectors backed by strong long-term trends. At the same time, the firm is expanding its focus to industrials, renewable energy and space technology through investments including Skyroot Aerospace.

“India’s consumption story still has significant headroom, particularly as spending shifts from unorganised to organised players,” said Shrivastav. Temasek remains positive on food and FMCG, attracted by strong brands, extensive distribution networks and capital-efficient business models. While competition for quality assets has intensified, the firm believes its edge lies in offering strategic expertise, governance support, global networks and operational insights, in addition to capital.

On India’s macroeconomic outlook, Shrivastav acknowledged risks from global geopolitical tensions and energy prices but said the country is entering this phase from a position of strength. Strong foreign exchange reserves, controlled inflation and sustained economic growth make India more resilient to external shocks than in previous cycles.