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India Cuts U.S. Treasury Holdings to About $190 Billion as Gold Share Rises

Economists frame the shift as deliberate reserve diversification.

Overview

  • U.S. Treasury data and Bloomberg figures show India’s holdings fell roughly 21% year on year to $190–$190.7 billion by October 31, 2025, the first annual drop in four years.
  • RBI data indicate gold holdings increased to 880.18 metric tonnes by end-October 2025, with gold accounting for 13.6% of reserves as of September 26.
  • Total foreign-exchange reserves stayed broadly stable around $685–$687 billion over the period, according to the coverage.
  • The pullback from Treasuries occurred even as the 10-year U.S. yield traded between 4% and 4.8%, a range that typically supports foreign buying.
  • Analysts, including Gaura Sengupta and Dipanwita Mazumdar, say the move reflects a measured shift away from long-duration dollar securities toward gold and other assets, a pattern also seen in China and Brazil while countries such as the UK and Japan added Treasuries.