India's exposure to US govt securities touch $79.7 bln

India has steeply increased its exposure to American government securities with the value of investments touching one-year high of $79.7 billion in July.

India's holdings of these securities have jumped by nearly $21 billion since July 2013 when it stood at just $58.9 billion, indicating improved sentiments about American economy as well as the bilateral ties.

Latest data from the US Treasury Department show that India's holdings at $79.7 billion were the fourth highest among BRICS grouping in July.

China's exposure was the highest at $1.264 trillion in July followed by Brazil at $258.6 billion and Russia with $114.5 billion worth holdings.

In the case of South Africa, investments in US government securities stood at $11.9 billion.

Among the BRICS bloc, except for China and South Africa, rest of the countries added to their holdings in July compared to June.

India has been increasing its investments in these Treasury securities since the new government under Prime Minister Narendra Modi took charge in May this year. In June, the exposure had touched $72.9 billion compared to $70.1 billion in May this year.

The investments stood at $68.7 billion in April, lower than $70.2 billion seen in March.

In January and February this year, the exposure were at $68.1 billion and $67 billion, respectively.

In signs that growth is gathering pace in the world's largest economy, US GDP expanded 4.6 per cent in the second quarter of 2014.

The growth rate is much higher than earlier estimate of 4.2 per cent for the same period.

"Real GDP increased 4.6 per cent in the second quarter, after decreasing 2.1 per cent in the first," US Department of Commerce said this Friday.

This upturn in the percent change in real GDP primarily reflected rise in exports and in private inventory investment, among others, it had said.

Currently, Modi is on his maiden visit to the US as Prime Minister and India is looking to attract more overseas investments into the country.