Finance Minister Nirmala Sitharaman on September 5 told Network18’s Group Editor-in-Chief Rahul Joshi in an exclusive conversation that the Reserve Bank of India (RBI) has already started diversifying its holding in the US Treasuries, along with purchasing of gold.
“To some extent the Reserve Bank of India (RBI) has already started diversifying from US Treasuries,” Sitharaman said in an interview.
“I don’t want divulge in to how they are diverting, but I think the RBI has taken very considered decision and they have also done by purchasing gold,” she added.
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On June 25, 2025, Moneycontrol had reported that India and China - two of the top 15 economies holding sizeable US treasuries - have reduced their exposure to US debt between 2024 and 2025 following credit rating downgrades by Moody’s and Fitch Ratings, along with America’s soaring national debt.
According to Bloomberg data, China has reduced exposure to US treasuries by 1.8 percent or $13.5 billion in its portfolio, while India has cut holdings by 0.4 percent or $1 billion between April 2024 and 2025.
China’s holding of US Treasuries came down to $757.2 billion as on April 2025 from $770.7 billion a year ago, while India’s holding fell to $232.5 billion as on April 2025 from $233.5 billion a yar ago.
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During this period, the yield on 10-year US treasury bills were in the range of 3.60-4.80 percent. The US had faced heightened uncertainties during 2024 and 2025 due to change in political leadership, imposition of tariff, talk of a recession along with fears of a potential economic slowdown.
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