India’s holding of U.S. government securities touched a one-year high of $80.5 billion in November 2014, amid the world’s largest economy witnessing signs of strong recovery.
This is also the highest ever since the new government under Prime Minister Narendra Modi came to power in May last year.
However, mixed trends were seen among the BRICS grouping.
While India, Brazil and South Africa hiked their exposure, China and Russia marginally trimmed their holdings.
India, which had trimmed its exposure to U.S. Treasury securities to $77.5 billion in October last year, hiked it by $3 billion to $80.5 billion at end of November last.
Latest data available with the U.S. Treasury Department show that India’s holding of its securities was at the highest one-year level in November, 2014.
In May last year, when the Modi government came to power, these holdings were worth $70.1 billion. Since then, the same was gradually increased and touched $80.4 billion last August.
However, in September, the holdings were cut to $80 billion and further down to $77.5 billion in October.
Despite reducing its exposure, China remained the largest holder of American government securities in November last with holdings worth $1.25 trillion.
During that month, Brazil and Russia’s holdings stood at $264.2 billion and $108.1 billion, respectively. South Africa, which has the lowest exposure among the BRICS nations, slightly increased its holdings to $10.4 billion in November.
Reflecting strong growth momentum, the American economy grew 5 per cent during the July-September quarter of 2014, much higher than 4.6 per cent expansion recorded in the preceding three months.
