India raises US treasury holdings, China cuts

Washington India increased its holdings of US Treasury securities for the third consecutive month in August, while China continued to reduce its exposure, narrowing the gap between the two Asian economies, according to data released by the US Treasury Department. India’s holdings rose to $219.7 billion at the end of August from $202.6 billion in July, marking an increase of approximately $17.1 billion in a month. The latest figure brings India’s holdings close to the $219.4 billion recorded in August 2025. India’s holdings had declined to $181 billion in April before recovering gradually over the following months. The total stood at $181.3 billion in May and $186.4 billion in June before rising sharply in July. In contrast, China’s holdings fell to $590.7 billion in August from $618 billion in July. The decline extends a year-long reduction, with China’s holdings down from $699.7 billion in August 2025, a drop of approximately $109 billion over 12 months. Consequently, the gap between China’s and India’s holdings narrowed to around $371 billion, compared with approximately $480 billion a year earlier. India ranked 14th among foreign holders of US Treasury securities, positioned below Hong Kong, whose holdings stood at $261.5 billion, and above Norway at $214 billion. Japan remained the largest foreign holder, with $1,068.3 billion, followed by the United Kingdom at $1,009.5 billion. China ranked third, ahead of Belgium, Canada, the Cayman Islands and Luxembourg. The Treasury reported a net international capital inflow of $199.8 billion in August. Foreign residents purchased $300.7 billion in long-term US securities, while reducing their holdings of Treasury bills by $47.8 billion.