India Slashes US Treasury Holdings by 19% in 2025 Amid Tariff Tensions

• India reduced its US Treasury holdings by nearly 19% in 2025, from $225.7 billion to $182.9 billion.
• This move signals a calibrated shift in foreign exchange reserve management amidst global trade tensions and financial uncertainty.
• The reduction comes against a backdrop of prolonged trade tensions with the US and concerns over potential financial restrictions.
• India is currently the 15th largest holder of US Treasuries; its exposure peaked at $247.2 billion in September 2024.
• The Reserve Bank of India diversifies its forex reserves across highly rated sovereign bonds, supranational securities, deposits with central banks, and gold.