Big move by India as US Treasury bill buying reduced amid tariff row

New Delhi (The Uttam Hindu) – Amid ongoing tariff tensions between India and the United States, India is continuously taking strategic steps to strengthen its economy. As part of this effort, India has significantly reduced its investments in US Treasury bonds over the past year. This change indicates that India is gradually adjusting its foreign exchange reserve policy amid global economic and geopolitical uncertainties and is now focusing on more diversified investments.

India's stake in US Treasury notes declined.

According to Bloomberg data, India's holdings in US Treasury notes due October 31, 2024, and October 31, 2025, fell by nearly 21 percent. During this period, investments fell from $241.4 billion to $190.7 billion. This is the first time in the last four years that India's investment in US Treasury notes has registered an annual decline. Previously, this investment had either been increasing or remained roughly stable.

According to Bloomberg data, India's holdings of US Treasury notes due October 31, 2024, and October 31, 2025 fell by nearly 21 percent, from $241.4 billion to $190.7 billion. This is the first time in four years that India's US Treasury investments have registered an annual decline. In previous years, this investment had either been growing or remained roughly stable.

This decline occurred at a time when yields in the US bond market were quite attractive. During this period, the yield on the 10-year US Treasury ranged between 4.0 and 4.8 percent, which typically attracts foreign investors. Despite this, India reduced its holdings. Economists believe this is due not only to yields, but also to India's changed strategy regarding its foreign exchange reserves. This means that India is now focusing more on diversifying its reserves.