Temasek India Investments Drop to $42B After $6.4B Divestment

Singapore-based investment firm Temasek Holdings recorded a decrease in its India-focused portfolio, with exposure dropping to $42 billion in the financial year ending March 2026.

This figure represents a notable reduction from $50 billion reported in the prior year, primarily attributed to a $6.4 billion divestment from Schneider Electric in August 2025.

India Portfolio Overview

• India exposure (FY26): $42 billion
• Previous year exposure: $50 billion
• Divestment from Schneider Electric: $6.4 billion
• India’s share of Temasek’s global portfolio: 7%
• Temasek’s global portfolio value: SGD 518 billion

Despite the overall reduction, currency fluctuations had only a minimal impact on the value of its Indian holdings, and India continues to represent 7% of Temasek’s global portfolio, which stands at SGD 518 billion.

Temasek maintains an overweight allocation to India, citing the nation’s strong demographic advantages and a stable policy environment as foundational to its optimistic outlook.

Strategic Shifts and Future Focus

During FY26, the firm acted as a net buyer in Indian public markets, concentrating on follow-on funding for existing companies within its portfolio.

Looking ahead, Temasek is strategically shifting its focus towards emerging sectors such as infrastructure and industrial, complementing its existing interests in consumer, healthcare, and financial services.

The firm has been actively investing in artificial intelligence since 2019, anticipating substantial growth in AI applications across India, though specific hardware infrastructure investments related to AI were not disclosed.

Investors should closely monitor future portfolio disclosures for insights into how these strategic ambitions translate into new deals, particularly distinguishing between public market strategies and private infrastructure projects.