Singapore's state investor Temasek is set to invest up to $12 billion in India over the next three years, focusing on sectors like financial services and healthcare, according to a senior executive. This move reflects Temasek's preference for India as it adopts a more cautious stance on China. India's economy is experiencing robust growth, and its stock markets are near all-time highs amid a surge in IPOs and deal activity. Mohit Bhandari, Managing Director for India investments at Temasek, noted that India currently represents 7% of Temasek's global portfolio and the company aims to expand this further.
Temasek had previously planned to invest $9-10 billion in India over three years, but has now revised this target to $10-12 billion due to the positive economic outlook. Bhandari expressed a long-term bullish outlook on India during an interview at Temasek's Mumbai office. He also acknowledged the economic and geopolitical challenges in China, indicating that Temasek will adjust its portfolio accordingly.
Recent reports from Temasek highlighted that profits from investments in the U.S. and India are helping to offset underperformance in China. The company is adopting a cautious approach towards China amid ongoing trade tensions. Currently, 22% of Temasek's investments are in the U.S. and 19% in China, with its exposure to the Americas surpassing China for the first time in a decade.
In the fiscal year ending March 31, Temasek invested $3 billion in India, marking its largest annual investment to date. Bhandari also mentioned plans to increase the number of investment professionals in India from the current 20 as the portfolio expands, though he did not provide specific details. Temasek's current investments in India include stakes in HDFC Bank, Ola Electric, and Manipal Hospitals.
In April 2023, Temasek invested $2 billion to increase its stake in Manipal from 18% to 59%, the largest deal ever in India's hospital sector. It later sold a minority stake to Novo Holdings and Mubadala. Foreign investors are increasingly interested in Indian hospital chains and healthcare groups, especially as these entities expand into smaller cities where demand for private care is growing due to overburdened public hospitals.
Temasek continues to seek additional investment opportunities in the healthcare sector, viewing it as a long-term growth area in India, according to Bhandari.
