India ups exposure to US securities to $68.5 bn in December

Increasing its exposure for the third straight month, India owned American government securities worth USD 68.5 billion at the end of December 2013.India has been slowly raising its holding of US Treasury bills -- since September when the same was worth USD 56.8 billion -- even as the developing world is apprehensive about the Federal Reserve's move to taper the stimulus programme.

Also Read: Fed taper likely to continue for 6 months: Nick ParsonsLatest data from the US Treasury Department show that India's holding rose to USD 68.5 billion in December last year from USD 63.9 billion in November.The holding stood at USD 59.9 billion in October 2013.Except for India, all other BRICS nations trimmed their exposure to American government securities in December. Other countries in the grouping are Brazil, Russia, China and South Africa.During that period, China, the largest holder of such securities, cut its exposure to USD 1.27 trillion from USD 1.32 trillion in November 2013.Brazil also slashed its holding to USD 245.4 billion in December from USD 246.9 billion recorded in preceding month.Besides, Russia cut its exposure to USD 138.6 billion while South Africa's holding was marginally down to USD 11.3 billion. In November last, these countries held securities to the tune of USD 139.9 billion and USD 11.7 billion, respectively.Japan continues to be the second largest holder of American treasury bills with holdings worth USD 1.182 trillion in December last. It also slightly trimmed exposure from USD 1.186 trillion seen in November 2013.American economy is on the recovery path and its GDP has been improving in recent quarters.The country's real gross domestic product (GDP) increased 3.2 per cent in the three months ended December 2013, as per advanced estimates of the US government."Current-dollar GDP--the market value of the nation's output of goods and services--increased 4.6 per cent, or USD 189.6 billion, in the fourth quarter (ended December last year) to a level of USD 17,102.5 billion," the Bureau of Economic Analysis had said last month.