SINGAPORE - Temasek is looking for strategic partners as it seeks to deploy between US$3 billion and US$5 billion (S$6.6 billion) a year in India, betting that the country can become a top driver for growth.

The Singapore investment firm is planning to hire another four or five investment professionals, bringing its India team to more than 20 people, Temasek India and investment group head Ravi Lambah said in an interview.

The firm could commit as much as US$10 billion to the country in three years, and the deployment could be through a mix of partnerships and more capital in public equities, he said. 

Temasek has been ramping up investments in India in the past five or six years, buoyed by the performance of its own portfolio, attractive demographics and increasingly deeper capital markets.

The firm is doubling its investment rate annually in the country, targeting banks, financial operations, healthcare, industrials, technology and consumer sectors, said Mr Lambah. It is also looking at decarbonisation and energy transition opportunities. 

“A decade ago, could we take a US$1 billion-plus position in a listed bank in India? I think it would have been harder,” Mr Lambah said in an interview in Mumbai. “Now we can do it over multiple companies, including banks.” 

About 60 per cent of Temasek’s investments are direct stakes, largely in financial services. The rest are mostly indirect exposure to underlying companies such as Bharti Airtel through its investment in Singtel, and Vistara through its investment in Singapore Airlines, according to Mr Lambah. 

“We like financial services, especially banks, because they’re a good proxy for economic growth,” Mr Lambah said. 

Temasek holds shares in publicly traded ICICI Bank, according to data compiled by Bloomberg. The Economic Times first reported about Temasek’s plans to increase investment in India. 

The US$284 billion money manager has identified four investment themes for the decade: the future of consumption, sustainable living, longer lifespans and digitalisation. 

“India is among the few countries where we found opportunities that fit all the four themes,” Mr Lambah said.

The firm is more bullish on India because of the increasing savings rate, an improvement in government stability and policy consistency. 

South-east Asia has a lot of potential, but is “a harder place” because the countries are all different, Mr Lambah said. “The key question comes down to investible opportunities really as against the country’s potential.”

Temasek remains committed to China, though big, winning bets on companies like Alibaba Group are becoming scarce. 

“The opportunity has changed. Geopolitics has driven that change, the Chinese government’s approach to things has changed,” Mr Lambah said. BLOOMBERG