India has reduced its exposure to American government securities, with holdings falling to $118 billion at the end of May — the lowest level this year — amid the US economy seeing a mixed growth trend.
After hitting a high of $121.6 billion in April, India’s holdings came down by $3.6 billion in May, as per the latest data from the US Treasury Department.
At the end of January this year, India owned these securities worth $119.8 billion before it dropped to $118.8 billion in February. In March, the holdings came in at $118.9 billion.
Neighbouring China remained the largest holder of the American government securities to the tune of $1.24 trillion followed by Japan, which owned $1.13 trillion worth of bonds in May.
In the BRIC bloc, India is the third-largest holder of American government securities after China and Brazil, which owned these bonds worth $249.5 billion in May.At the end of May, Russia’s holdings dropped to $88.2 billion.
In the three months ended June, American economy grew 1.2 per cent, as per advanced estimate released by the US Bureau of Economic Analysis (BEA).The economy expanded 0.8 per cent in the first quarter of 2016.
“The increase in real GDP in the second quarter reflected positive contributions from personal consumption expenditures and exports that were partly offset by negative contributions from private inventory investment, non-residential fixed investment, residential fixed investment, and state and local government spending,” BEA said in a release on July 29.