Finance Minister Nirmala Sitharaman, in an interview with Network18, revealed that the Reserve Bank of India (RBI) has already begun diversifying its holdings in US Treasuries, alongside increasing its gold reserves. She didn’t share more details, however said that RBI decided after much consideration.
“To some extent the Reserve Bank of India (RBI) has already started diversifying from US Treasuries,” Sitharaman said in the interview.
“I don’t want to divulge how they are diverting, but I think the RBI has taken a very considered decision, and they have also done this by purchasing gold,” she added.
India, China Reduce US Treasury Exposure
Earlier reports had indicated a broader shift among major economies in response to US economic developments.
According to reports, India and China, two of the top 15 economies holding significant US Treasuries, had reduced their exposure to US debt between 2024 and 2025.
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The move followed credit rating downgrades by Moody’s and Fitch Ratings, along with concerns over America’s growing national debt.
According to Bloomberg data, both China and India reduced their holdings during the last fiscal year. While China reduced its US Treasury holdings by 1.8 percent, equivalent to $13.5 billion, India reduced its exposure by 0.4 percent, or $1 billion, between April 2024 and April 2025.
As of April 2025, China’s investments in US Treasury bonds are at $757.2 billion, down from $770.7 billion a year earlier. Similarly, India’s holdings fell to $232.5 billion from $233.5 billion.
India Among Top 20 Global US Treasury Investors
India is among the top 20 investors globally in US Treasury bonds despite the decline. It has surpassed countries like Saudi Arabia and Germany.
The period between 2024 and 2025 saw yields on 10-year US Treasury bills ranging from 3.60 to 4.80 percent.
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Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
