India Reduced Investments in US Treasury Securities by More Than 18% in 2025

In 2025, India significantly lowered its holdings of US Treasury securities, with investments declining by over 18%. This move is part of a broader strategy implemented by the Reserve Bank of India (RBI) to rebalance the country’s foreign exchange reserves.

RBI’s Strategy to Rebalance Reserves

The RBI is decreasing India’s exposure to US government debt while simultaneously increasing gold reserves. This dual approach aims to diversify India’s asset holdings and enhance the security of its foreign exchange reserves through 2026.

The shift reflects India’s focus on maintaining a more balanced and secure reserve portfolio amid changing global economic conditions.

Key Takeaways

• India reduced its US Treasury securities holdings by more than 18% in 2025.
• The Reserve Bank of India is actively rebalancing foreign exchange reserves.
• There’s an increased accumulation of gold reserves to diversify assets.
• The strategy aims to strengthen reserve security through 2026.