Singapore state-owned investor Temasek is broadening its investment mandate in India, moving beyond its traditional consumer, financial services, and healthcare strongholds to target industrials and artificial intelligence, the firm's India executives told Business Today. The company’s local portfolio has expanded more than fourfold over the past decade to reach $42 billion as of March 2026, according to Mohit Bhandari and Ved Prakash Kalanoria, Managing Directors at Temasek Global Investments.
Investment deployment and pipeline
Temasek has deployed close to $9 billion in India over the past three years and is targeting an equal quantum over the coming three years, the executives said. The deal pipeline remains strong despite near-term uncertainties from the West Asia war, which the firm factors into its vetting process. “There will always be years where you will have some geopolitics, some external shocks that will impact the country. But we look beyond near-term uncertainties. The last two quarters of disruption has not necessarily led to us changing our investment process,” Bhandari and Kalanoria stated. They added that India is one of the best performing markets for Temasek and that the firm will continue deploying capital where attractive opportunities arise.
Sectoral shift: from domestic consumption to manufacturing and AI
The firm’s core portfolio has traditionally been built around consumer, healthcare, and financial services – sectors reliant on domestic consumption, which shields Temasek from global macro-volatility. Now, Temasek is betting on industrials as India sharpens its manufacturing play, as well as on AI opportunities. The company has set a target to increase its AI-related exposure to up to 15% of its portfolio value by 2031, from 6% currently. “There will be companies which over a period of time will start benefiting by being the application layer on top of a lot of services or the infrastructure layer. We will try and see if we can partner with some of those companies which are going to benefit from that trend of AI adoption,” the executives said. Within consumer, Temasek will look at both staples-oriented regional brands and those catering to discretionary spends.
Portfolio companies and upcoming IPOs
Temasek’s India investments span traditional and new-age companies, including:
| Company | Sector |
|---|---|
| ICICI Bank | Financial services |
| Eternal | Consumer/healthcare |
| Lenskart | Eyewear retail |
| Skyroot Aerospace | Aerospace |
Two of its portfolio firms – NSE (National Stock Exchange) and Manipal Health Enterprises – are headed for billion-dollar public listings this year. Bhandari and Kalanoria did not comment on IPO valuations but noted that public markets are now trading in line with long-term averages. Last year, Temasek acquired a 9-10% minority stake in Haldiram Snack Foods, valuing the company at $10 billion.
Implications for trade finance and capital flows
For finance executives and investors tracking emerging markets, Temasek’s continued expansion signals sustained confidence in India’s domestic demand story and its manufacturing push. The firm’s willingness to deploy large capital across sectors – from staples to technology – suggests a favourable environment for both equity and debt financing linked to these industries. Sovereign wealth fund participation also enhances country creditworthiness by providing long-term, stable capital that reduces reliance on volatile foreign portfolio flows. The focus on AI infrastructure may spur growth in technology services and export-oriented digital products, indirectly supporting India’s trade balance. The commitment to maintain or increase deployment levels despite geopolitical headwinds indicates that near-term volatility may not deter patient capital, a positive signal for trade finance cost of capital and FX stability in the region.
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