PATTAYA, Thailand – India’s central bank has sharply reduced its holdings of U.S. government debt over the past year, while significantly increasing its gold reserves, raising questions about shifting reserve management strategies among major economies.
According to The Economic Times, data from the U.S. Treasury shows that the Reserve Bank of India (RBI) held US$190 billion in U.S. Treasury securities at the end of October 2025, down from US$241.4 billion a year earlier — a reduction of more than US$50.7 billion.
New Delhi-based outlet OpIndia reports that India’s overall holdings of U.S. Treasuries fell by 21% in 2025, despite the U.S. 10-year Treasury yield rising from around 4% to 4.8%, which would normally make such assets more attractive to investors.
The decline in U.S. bond exposure has coincided with a substantial increase in India’s gold reserves. RBI data shows India now holds approximately 880.18 metric tons of gold, following aggressive purchases over recent years. Gold currently accounts for 13.6% of India’s total foreign exchange reserves, valued at US$687 billion, up from 9.3% last year.
India’s move mirrors a broader trend among several central banks, including China, Brazil, and Saudi Arabia, which have also increased gold holdings over recent quarters. Analysts suggest this reflects concerns over potential dollar volatility and rising U.S. debt servicing costs, with compounded interest payments projected to surpass US$10 trillion in the coming years.
However, the shift is not universal. The United Kingdom, Japan, Canada, and the United Arab Emirates have increased their holdings of U.S. Treasuries during the same period.
Experts caution against interpreting India’s actions as a rejection of the U.S. dollar, noting that the move likely reflects portfolio diversification and reserve rebalancing, rather than a fundamental move away from dollar-denominated assets.
