India has trimmed its holdings of US government securities to USD 77.5 billion at the end of October even as the world’s largest economy is expanding at a moderate pace.
Apart from India, other BRICS nations — Brazil, Russia, China and South Africa — cut down their holdings of American government securities.
Latest data from the US Treasury Department shows that India held securities worth USD 80 billion in September and further reduced its exposure to USD 77.5 billion in October — which is also a three-month low.
In August, the holdings were to the tune of USD 80.4 billion while it stood at USD 79.7 billion in July.
Interestingly, BRICS bloc has reduced their exposure to these securities at a time when America’s economic activity is expanding at a moderate rate.
While China remains the largest holder of American government securities, it cut down exposure to USD 1.25 trillion in October.
During the same period, Brazil and Russia slashed their holdings to USD 261.7 billion and USD 108.9 billion, respectively.
In October, South Africa brought down its holdings of US government securities to USD 10.3 billion.
The United States saw its real GDP increase at an annual rate of 3.9 per cent in the three months ended September, according to official data released last month.