Singapore-based Temasek Holdings reported its investment exposure in India dropped to $42 billion in FY26, down from $50 billion the previous year. The change was driven primarily by a $6.4 billion exit from Schneider Electric. Despite this, the firm maintains an overweight position on India, citing strong demographics and a stable policy environment as key reasons for continued interest.
Detailed Coverage
Singapore-based investment firm Temasek Holdings has reported a change in its India-focused portfolio for the financial year ending March 2026. According to the company's latest disclosures, its exposure to Indian assets fell to $42 billion, a decrease from the $50 billion recorded in the prior year. The investment firm clarified that the decline was largely the result of a specific transaction rather than a broader retreat from the market.
Impact of the Schneider Electric Divestment
The primary driver behind the reduction in exposure was a $6.4 billion divestment from Schneider Electric in August 2025. Temasek noted that currency fluctuations had a minimal impact on the overall value of its Indian holdings. Despite the lower total exposure, the firm’s executives stated that India remains a central part of their global investment strategy. As of the end of the 2026 financial year, India represented 7% of Temasek’s global portfolio, which holds a total value of SGD 518 billion.
Strategic Outlook and Sector Focus
Temasek continues to maintain an overweight allocation to India, meaning its investment levels in the country are higher than India's proportional weight in the global economy. Management highlighted the country’s demographic advantages and stable policy environment as core reasons for this optimistic stance. While the firm was a net buyer in Indian public markets during FY26—a move noted for being contrarian amid broader foreign capital outflows—much of its activity involved follow-on funding for existing companies.
Looking ahead, Temasek is shifting its attention toward newer sectors. While the firm has a long-standing history in consumer, healthcare, and financial services, it is now actively exploring opportunities in infrastructure and industrial sectors. Additionally, Temasek has been dedicating resources to artificial intelligence since 2019. Executives indicated that they expect India to see significant growth in the application of AI technologies, though they did not provide specific details regarding investments in data centers or other related hardware infrastructure.
Investors may monitor the firm’s future portfolio disclosures to see how these infrastructure and industrial ambitions translate into new deals. The next important updates will likely center on whether the firm continues its contrarian approach in public markets or pivots toward private infrastructure projects as part of its long-term growth strategy.