India Delivers 4.5 Trillion Blow to US Economy, Trump Caught in Own Trap

• India's investment in US Treasury declined by 21% in one year, from $241.4 billion to $190.7 billion.
• This represents a $50 billion (4.5 trillion rupees) reduction, the first decrease in four years.
• The decline is attributed to India's strategic review of foreign exchange reserves, diversifying away from the US dollar.
• Economists note India's increasing inclination towards diversification and investment in alternatives like gold and other countries' government bonds.
• The weakening dollar index and US labor market issues contribute to the diminishing appeal of dollar-denominated assets.

Why It Matters: India's strategic shift in foreign exchange reserves has dealt a significant financial blow to the US economy.