The move to reduce Treasury bills came well before Donald Trump imposed 50% tariffs on most imports from the South Asian nation
India has reduced its holdings of US Treasury bills over the past year, reflecting a more cautious approach in its central bank’s management of foreign exchange reserves, the Indian Express reported on Tuesday.
The newspaper cited US Treasury Department data, which showed that India’s investments in American securities reached a peak of $247.2 billion in September 2024. By June 2025, New Delhi, which is the tenth-largest holder of Treasury bills – had around $227 billion in US securities.
US Treasury bills are short-term debt securities backed by the American government. A rise in yields can indicate that investors demand higher returns due to expectations of stronger economic growth, higher inflation, or increased risk.
India’s move to reduce its US Treasury bills came well before President Donald Trump imposed 50% tariffs on most Indian imports.
On Tuesday, the Financial Times reported that Trump has urged the European Union to impose tariffs of up to 100% on imports from China and India, as part of a joint effort to pressure Russia over the Ukraine conflict.
However, Trump and Indian Prime Minister Narendra Modi confirmed on Wednesday that Washington and New Delhi are continuing their trade talks, expressing optimism that the negotiations could conclude soon.
Industry experts say India’s shift to reduce exposure to US Treasury bills is likely to deepen in the future. At the same time India’s central bank, the Reserve Bank of India, has brought home more of the country’s gold reserves from abroad.
India’s foreign exchange reserves were estimated to be at $690 billion as of August.
