Despite the uncertain global backdrop, India’s growth is likely to remain resilient, driven by a growth in capex (capital expenditure), Singaporean fund Temasek said on Wednesday.

“Growth will also be accelerated by the recovery in domestic consumption, and the rapid pace of production arising from supply chain reorientation.” Temasek said in its presentation on the 2025 review .

The investor said a US-India trade deal looks promising along with other free trade agreements that the government is pursuing. India remains a key geopolitical player both in the region and globally. The current government is eager to advance and strengthen relations with strategic partners, it said.

“We maintain a positive outlook, given India’s strong domestic market, especially in areas such as consumer, financial services, and healthcare,” it added.

Gains from the Singapore based portfolio companies and direct investments in key markets, including India, China, and the US has led to the growth in portfolio value of Temasek, the firm said on Wednesday.

Temasek posted a record net portfolio value (NPV) of S$434 billion for the financial year ended 31 March 2025, marking a S$45 billion increase over the previous year.

India’s share in Temasek’s portfolio grew from 5% in March 2021 to 8% in March 2025.

“Our direct investments in markets like China, the US, and India has contributed in uplifting our net portfolio value over the year. The growth reflects the impact of shifting macroeconomic conditions on asset prices as well as the long-term prospects of our investments aligned with structural tailwinds in these markets,” Temasek’s Chief Investment Officer Rohit Sipahimalani said.

Early this year, Temasek and its partner EQT sold O2 Power to JSW Neo Energy for $1.4 billion.

Temasek said it has set up offices in emerging markets such as India and China, to capture opportunities fuelled by the growth of middle-income population and local industries.