Temasek's India exposure hits $50 bn, eyes $3-4 bn annual investments

Temasek Holdings increases its India exposure to $50 billion by March 2025, with plans to invest $3-4 billion annually, focusing on sectors like financial services, healthcare, and sustainability

Temasek Holdings, the Singapore government-owned investment firm, has increased its exposure to India to more than $50 billion as of March this year, up from $37 billion a year earlier, reinforcing its confidence in the country’s long-term economic trajectory.

 

The investment firm plans to deploy $3 billion-4 billion annually in India, a senior executive said in an interview with Business Standard.

 

“We are long-term investors,” said Ravi Lambah, head of India and strategic initiatives, here on Monday.

 

“We have a strong track record of partnering early-stage companies and entrepreneurs through their lifecycle of growth, initial public offerings, and market leadership over the years; some examples include Eternal (formerly Zomato) and Policybazaar.”

 

This calendar year, Temasek made a significant investment, acquiring 10 per cent in Haldiram Foods for $1 billion. Lambah said the firm’s collaborative approach had made it a preferred partner for Indian family-owned businesses. 

 

“Our long-term approach sets us apart,” he said. “Understanding the importance of preserving the family’s vision and values, we focus on alignment and empowering management while adding value through our global networks, helping drive professionalisation and strategic expansion.”

 

India is now among Temasek’s top three global investment destinations. Over the past decade, the firm has ramped up allocations across sectors including financial services, consumer, technology, health care, and sustainability-focused businesses.

 

Temasek has a hands-on approach to value creation, Lambah said. “We adopt a partnership mindset to address challenges and enhance value, working closely with our investees so that they become resilient long-term compounders.”

 

With the $50 billion milestone, India joins Singapore and the United States (US) as one of Temasek’s most significant markets. Its investments span both public and private markets, including fast-growing digital businesses, climate ventures, and innovation-driven enterprises. 

 

Apart from Temasek, US-based private equity firm Blackstone has hit the $50 billion mark in India and plans to double it in five years. Canadian fund Brookfield has also indicated its plans to treble its exposure in India in five years from the present $31 billion.

 

“Our goal is to build a resilient and forward-looking portfolio in India and globally, delivering sustainable returns over the long term,” Lambah said.

 

Temasek’s rising footprint underscores growing institutional confidence in India’s macroeconomic fundamentals, demographic trends, and digital infrastructure. 

 

On ongoing tariff negotiations between India and the US, Lambah said these were unlikely to affect the company’s portfolio in India. “We think the peak of high tariff rates is behind us after Liberation Day,” he said. “Most of our companies are focused on India’s domestic market and are insulated from global tariff changes.”

 

On exits, Lambah said robust equity markets had enabled profitable outcomes. “We don’t have any preset timeline like private equity firms,” he said. “We think about IPOs when companies are ready, and the timing and valuations work for both existing and new shareholders.”

 

Temasek is evaluating IPO plans for portfolio companies such as Manipal Hospitals and Haldiram.

 

“These are large offerings, and the board and shareholders will work out the right timing,” Lambah said. “Given where markets are, the next 12 to 18 months look promising for public listings.”

 

On returns on investment, Lambah said that compared to Singapore’s sovereign wealth fund, GIC, the firm’s focus was to invest at the higher end of the risk spectrum, which means Temasek too targets higher returns.

 

“Over the long term, since inception, our portfolio has delivered returns of 15 per cent (measured in dollars) annually. That’s more than 50 years of strong compounding, which we believe is a solid performance over such a long horizon,” he said.