MUMBAI Singapore state investor Temasek plans to invest up to US$12 billion in India over three years in sectors such as financial services and healthcare, a top executive said on Monday, favouring the South Asian nation as it turns cautious on China.

India's economy is growing sharply and its stock markets are trading near record highs amid an IPO and dealmaking boom. India accounts for 7% of Temasek's global exposure which it wants to increase further, said Mohit Bhandari, the company's managing director for India investments.

Temasek had plans a year ago to invest around US$9-10 billion in India over three years, but it is increasing that goal to US$10-12 billion given the overall economic growth outlook, he added.

"We are bullish in India for the long term," Bhandari said in an interview at Temasek's Mumbai office.

"We are cognisant of the current economic and the geopolitical tensions that exist (in China) and to that extent we will align our portfolio accordingly," he added.

Temasek last week said that profits from investments in the US and India were helping it cushion the impact of underperformance in China. Temasek also said that it is taking a cautious approach to China amid trade tensions.

About 22% of Temasek's investments are in the US and 19% in China, and its exposure to the Americas surpassed China in the last financial year for the first time in a decade.

In India, Temasek deployed US$3 billion in the fiscal year that ended March 31, its largest annual investment so far.

Bhandari also said that Temasek will look at hiring more investment professionals in India from the current 20 as its portfolio grows, but declined to share specifics.

Temasek's current India exposure includes investments in HDFC Bank, IPO-bound e-scooter maker Ola Electric and Manipal Hospitals.

In April 2023, Temasek spent US$2 billion to raise its stake in Manipal to 59% from 18% in the biggest hospital sector deal ever in India. It later sold a minority stake to Novo Nordisk's parent Novo Holdings and Abu Dhabi's sovereign investor Mubadala.

Indian hospital chains and healthcare groups are seeing more and more interest from foreign investors as many expand into smaller cities where demand for private care is rising as public hospitals remain overburdened.

Temasek will continue to scout for more investment opportunities in the healthcare space as it believes the sector is a "multi-decade" growth story in India, Bhandari said.  

  - Reuters