India Reduces US Treasury Holdings by Nearly 19% in 2025 Amid Trade Tensions

In 2025, India reduced its holdings of US Treasury securities by nearly 19%, from $225.7 billion in January to $182.9 billion in December, reflecting a cautious shift in foreign exchange reserve management amid ongoing trade tensions with the US. India, the 15th largest holder, had peaked at $247.2 billion in September 2024. This reduction contrasts with increases by Japan and the UK, while China also decreased its holdings. The move signals India's strategic adjustment amid global financial uncertainties.