India Scales Back Holdings of U.S. Treasury Bills

(MENAFN) India has scaled back its holdings of US Treasury bills over the past year, signaling a more guarded stance by the Reserve Bank of India in managing the nation’s foreign exchange reserves, according to media on Tuesday.

The report references US Treasury Department data showing India’s investments in American securities peaked at $247.2 billion in September 2024. By June 2025, New Delhi, ranked as the tenth-largest holder of these Treasury bills, had reduced its holdings to approximately $227 billion.

US Treasury bills, short-term debt instruments guaranteed by the US government, reflect investor confidence and risk appetite. Higher yields often indicate expectations of stronger economic growth, inflation pressures, or elevated risk factors.

Notably, India’s reduction in US Treasury bills preceded President Donald Trump’s decision to impose 50% tariffs on most Indian imports.

On Tuesday, media revealed that Trump has urged the European Union to levy tariffs as high as 100% on imports from China and India, aiming to collectively pressure Russia amid the Ukraine conflict.

Despite mounting trade pressures, Trump and Indian Prime Minister Narendra Modi affirmed on Wednesday that Washington and New Delhi are continuing their trade negotiations, expressing optimism about an imminent resolution.

Industry analysts predict India’s cautious stance on US Treasury securities will intensify going forward. Concurrently, the Reserve Bank of India has been repatriating a larger portion of the country's gold reserves held overseas.

India’s total foreign exchange reserves stood at an estimated $690 billion as of August.

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