Temasek Increases India Investment to 8% of Its Global Portfolio; China Exposure Shrinks

Singapore’s state investment firm Temasek Holdings has been steadily increasing its commitment to India while reducing its exposure to China for the third consecutive year. 

According to its 2025 annual review, Temasek has now made India its 3rd-largest investment destination, behind only Singapore and China.

India Becomes Temasek’s 3rd Largest Investment Destination

Temasek’s allocation to India reached 8% of its global portfolio worth S$434 billion (around $324 billion) as of March 2025. This is up from 7% in the previous year and 6% in 2023. India has now overtaken the rest of Asia Pacific, excluding Singapore and China, which stands at just 2%.

In comparison, the company’s investment in China has fallen from 22% in 2023 to 18% in 2025. The Americas account for 24%, while EMEA (Europe, Middle East, and Africa) contributes 12% to the portfolio. The shift highlights a broader strategy to rebalance exposure across key geographies.

Growing Preference for Consumer and Digital Businesses in India

Temasek’s recent activity in India reflects a clear preference for consumer-led and digitally enabled businesses. The firm has taken minority stakes in companies like Lenskart and Rebel Foods, both leaders in the direct-to-consumer space. These moves are aligned with India’s rising income levels, urbanisation, and expanding digital economy.

The investment firm stated, “We continued to increase our stakes in Indian companies that benefit from the country’s growing consumer market.” India’s consumption-driven growth story and favourable demographics remain key to this strategy.

Read More: Lenskart Founder Peyush Bansal to Buy 2% Stake from Investors Ahead of IPO! 

Investments Across Startups, Banks, and Traditional Sectors

Temasek’s exposure in India spans multiple sectors. Apart from digital-first consumer brands, the company has also built significant positions in leading private lenders such as Axis Bank, HDFC Bank, and Kotak Mahindra Bank. These financial institutions have benefited from India’s expanding formal credit sector and evolving banking landscape.

Early-stage investments account for around 5% of Temasek’s total portfolio. Within this category, multiple India-linked startups have received funding, reinforcing the firm’s long-term view on India’s entrepreneurial ecosystem.

Haldiram Investment Reflects Confidence in Indian Packaged Foods

A highlight from the report is Temasek’s post-year-end investment in Haldiram Snacks Food, India’s largest packaged snacks company. The investor deployed $1 billion to acquire a 10% stake in the brand. This move underscores the company's confidence in India's fast-moving consumer goods sector.

The firm also backed SarvaGram, a rural fintech player offering financial tools and productivity solutions to rural households. This investment is part of Temasek’s commitment to sustainability and inclusive growth, an area the company continues to prioritise.

Conclusion 

While Temasek remains invested in prominent Chinese technology companies such as Tencent and Meituan, the share of its China portfolio has declined for three consecutive years. The company has cited real estate sector challenges, trade uncertainty, and sluggish inflation as reasons for its cautious approach.

In the 2025 financial year, Temasek invested S$52 billion and divested S$42 billion globally. This resulted in a net deployment of S$10 billion, reversing the previous year’s net divestment of S$7 billion.

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