India invests in US debts worth $38.8 bn till May '09

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 than $260 billion. Neighboring 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.