Latest data from the Treasury Department shows that India's holdings rose to $83 billion in December, an increase of $2.5 billion compared to the previous month. In November last year, the exposure touched $80.5 billion. India has been hiking its holdings since October 2014 when the same stood at $77.5 billion.
Among the BRIC nations, India has the least exposure to U.S. government bonds. At the end of December, after China, Brazil had the maximum exposure at $255.8 billion followed by Russia with holdings worth $86 billion.
In the three months ended December, American economy grew 2.6 per cent, as per latest estimate from the U.S. Bureau of Economic Analysis.
"The sum total in December of all net foreign acquisitions of long-term securities, short-term US securities, and banking flows was a monthly net Treasury International Capital (TIC) outflow of $174.8 billion. "Of this, net foreign private outflows were $143.7 billion, and net foreign official outflows were $31.1 billion," the Treasury Department said in a recent statement.
Foreign residents increased their holdings of its bills by $24.8 billion in December. Foreign resident holdings of all dollar-denominated short-term U.S. securities and other custody liabilities increased by $10.1 billion, it added.