India trims US debt, boosts gold reserves in $690 bn forex stockpile reshuffle: Report

India is increasingly leaning on gold to strengthen its foreign exchange reserves while trimming its exposure to US Treasury bills (USTs), according to a report by The Economic Times. Fresh data from the Reserve Bank of India (RBI) and the US Treasury Department show a shift in preference that reflects a global move away from heavy reliance on the US dollar.

India’s holdings of US T-bills fell to $227 billion in June 2025, down from $242 billion a year earlier. Despite the pullback, the country remains among the top 20 investors in American debt, ahead of Saudi Arabia and Germany.

Economists see the decline in dollar-linked assets as part of a broader diversification strategy. The Economic Times quoted Madan Sabnavis, chief economist at Bank of Baroda, saying India’s reserves have risen through higher gold holdings alongside a reallocation in foreign currency assets.

During the same period, the RBI added 39.22 metric tonnes of gold to its reserves. India’s gold stockpile stood at 879.98 metric tonnes on June 27, 2025, up from 840.76 metric tonnes a year earlier.

Even with the reduced exposure to US debt, India’s overall foreign exchange reserves stood firm at \$690 billion as of August 22, 2025. Nearly all Treasury holdings are part of this stockpile, ensuring New Delhi retains a strong dollar buffer even as it builds its gold position.

India is not alone in rebalancing its reserves. China, the third-largest holder of US Treasuries after Japan and the UK, cut its holdings to $756 billion in June 2025 from $780 billion a year earlier. In contrast, Israel moved in the opposite direction, increasing its exposure to American debt.