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India increases US debt exposure; holds over $50 billion securities - The Economic Times
NEW DELHI: India has been increasing its exposure to American debt since the start of this year and owned US government securities worth USD 51.2 billion till April, amid persisting global economic uncertainties.
This is also the first time, at least since April 2011, that the value of India's holding of American debt crossed the USD 50 billion mark.
With European debt turmoil threatening to roil the fragile global economic recovery and many emerging nations grappling with slowdown, investing in US government securities has become a more safer bet.
Latest data from the US Treasury Department show that India's holding of American government securities increased nearly USD 9 billion in the first four months of 2012.
At the end of April, India held securities worth USD 51.2 billion compared to USD 42.8 billion in January.
Reflecting the increased exposure, India's holding of American securities climbed to USD 44.1 billion in February and the same rose to USD 46.7 billion in March.
In just one month -- between March and April -- the holding went up by about USD 5 billion.
The significant rise in the securities' holding comes against the backdrop of question marks over the future of euro -- the currency shared by 17 European nations. The prevailing world economic situation and overall volatility in currency markets have also made the US dollar a safe haven.
As on April, India's owned more American debt than developed nations including South Korea (USD 41.6 billion) and Italy (USD 24.6 billion).
Meanwhile, China remained the largest holder of US treasury securities, holding USD 1.145 trillion at the end of April. The same rose marginally from USD 1.144 trillion in March.
Japan is the second biggest holder of US treasury securities and they were worth USD 1.066 trillion in April.
The US -- world's largest economy -- grew 1.9 per cent in the three months ended March 2012.
"Real gross domestic product -- the output of goods and services produced by labour and property located in the US -- increased at an annual rate of 1.9 per cent in the first quarter of 2012," the US Bureau of Economic Analysis had said in May.
NEW DELHI: India has been increasing its exposure to American debt since the start of this year and owned US government securities worth USD 51.2 billion till April, amid persisting global economic uncertainties.
This is also the first time, at least since April 2011, that the value of India's holding of American debt crossed the USD 50 billion mark.
With European debt turmoil threatening to roil the fragile global economic recovery and many emerging nations grappling with slowdown, investing in US government securities has become a more safer bet.
Latest data from the US Treasury Department show that India's holding of American government securities increased nearly USD 9 billion in the first four months of 2012.
At the end of April, India held securities worth USD 51.2 billion compared to USD 42.8 billion in January.
Reflecting the increased exposure, India's holding of American securities climbed to USD 44.1 billion in February and the same rose to USD 46.7 billion in March.
In just one month -- between March and April -- the holding went up by about USD 5 billion.
The significant rise in the securities' holding comes against the backdrop of question marks over the future of euro -- the currency shared by 17 European nations. The prevailing world economic situation and overall volatility in currency markets have also made the US dollar a safe haven.
As on April, India's owned more American debt than developed nations including South Korea (USD 41.6 billion) and Italy (USD 24.6 billion).
Meanwhile, China remained the largest holder of US treasury securities, holding USD 1.145 trillion at the end of April. The same rose marginally from USD 1.144 trillion in March.
Japan is the second biggest holder of US treasury securities and they were worth USD 1.066 trillion in April.
The US -- world's largest economy -- grew 1.9 per cent in the three months ended March 2012.
"Real gross domestic product -- the output of goods and services produced by labour and property located in the US -- increased at an annual rate of 1.9 per cent in the first quarter of 2012," the US Bureau of Economic Analysis had said in May.
