Temasek pivots to India with $12 billion investment plan

In yet another investor exodus from China to India, Singapore state investor Temasek has announced plans to invest up to $12 billion over three years in India's growing sectors of financial services and healthcare to offset losses in underperforming Chinese economy, according to sources quoted by Reuters.

This announcement comes at a time when Indian stock markets are witnessing record highs amid IPO boom. The country accounts for 7 per cent of Temasek's global exposure. This is lower than the 22 per cent investments in the United States and 19 per cent in China. But Mohit Bhandari, company's managing director for India investments, revealed that the company is bullish on India in the long term. Temasek deployed $3 billion in the fiscal year ending on March 31, its largest annual investment so far.

'We are cognizant of the current economic and the geopolitical tensions that exist in China and to that extent we will align our portfolio accordingly,' he said.

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Temasek has already revealed how their United States and India assets are helping to counter below-par numbers in the second-largest economy of the world. The cautious approach comes amid China's trade tensions with the US and the EU which is further hurting investor sentiments.

Temasek's current investments in India include HDFC Bank, Ola-electric and Manipal hospitals. India's healthcare and hospital chains are attracting major investments from foreign investors.