Temasek expects stable growth and recovery in private consumption in India over the next two years

Singapore investor Temasek expects India’s growth to remain stable over the next two years, driven by infrastructure-driven investments and a recovery in Private consumptionTemasek on Tuesday reported an increase in its net portfolio value (NPV) of SGD 7 billion to SGD 389 billion for the fiscal year ending March 31, 2024, mainly due to gains on investments in the US and India. India continues to experience strong economic momentum amid improved macroeconomic and political stability, the company said in a statement.

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“We expect growth to remain stable over the next two years, driven mainly by infrastructure investment, accelerated supply chain diversification and a recovery in private consumption,” Temasek said.

Temasek announced that its net portfolio value (NPV) increased by SGD7 billion to SGD389 billion for the financial year ended March 31, 2024.

“The increase was mainly due to our investment income from the US and India, offset by the underperformance of the Chinese capital markets,” it said.

Temasek said that despite global economic uncertainties, the company maintained a cautious but steady pace of investment, investing 26 billion Singapore dollars in opportunities in sectors such as technology, financial services, sustainabilityConsumers and healthcare, focused on the four structural trends of digitalization, sustainable living, the future of consumption and longer life expectancy.

With the exception of Singapore, the United States remained the leading destination for Temasek capital, followed by India and Europe. The country has also increased its investment activities in Japan.

Temasek sold SGD 33 billion during the year, of which about SGD 10 billion was the capital repayment by Singapore Airlines and Pavilion Energy for their mandatory convertible bonds and preferred shares, respectively.

Overall, Temasek recorded a net disinvestment amount of SGD 7 billion, compared to a net investment of SGD 4 billion in the previous year.

“We have invested in electric vehicle companies Mahindra Electric Automobile in India and BYD in China, sustainable battery solutions provider Ascend Elements in the US and electrolyzer manufacturer Electric Hydrogen in the US,” it added.

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Sybil Alvarez

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