India invests in US debts worth $38.8 bn

India invests in US debts worth $38.8 bn
PTI
Comment E-mail Print Share
First Published: Sun, Aug 09 2009. 12 13 PM IST
Updated: Sun, Aug 09 2009. 12 13 PM IST
New York: India has invested in US debt securities worth $38.8 billion till May this year, nearly four-fold rise when compared to the same month in 2008.
Even as the world’s largest continued to reel under one of the worst recession in 80 years, India has been steadily increasing its exposure to American debt since May last year, when the holdings were worth just $10.3 billion.
According to data available with the US Treasury Department, India bought American debt worth $38.8 billion till May 2009.
India has purchased more American debt since October 2008, when the financial turmoil turned for the worse with the failure of then Wall Street major Lehman Brothers.
India’s exposure has jumped more than two-fold till May this year, in comparison with just $18.3 billion in October last year. Till April this year, India’s holding stood at $38.5 billion.
India has foreign exchange reserves of more $260 billion.
Neighbouring China continues to be the biggest buyer of American debt, with holdings worth $801.5 billion till May 2009.
At the second spot is Japan, with holdings to the tune of $677.2 billion.
Among the Bric (Brazil, Russia, India and China) nations, India has the least exposure. As on May 2009, Brazil and Russia purchased US debt of $127.1 billion and $124.5 billion, respectively.
To battle the economic crisis, the Federal government has pumped in billions of dollars into the system including a mammoth $787 billion stimulus package. In addition, the US has come up with various plans to ensure steady credit flow.
After several months of financial turbulence, the US economy is slowly showing possible signs of stabilisation.
In the second quarter of 2009, the US GDP shrank less than expected at one per cent while the unemployment rate slipped to 9.4% in the month of July.
Further, many of the corporates have reported better second quarter results, spurring hopes of an economic turnaround by the end of this year.
Comment E-mail Print Share
First Published: Sun, Aug 09 2009. 12 13 PM IST
More Topics: US | Debt | India | China | Economy |