Being one of the 15 largest creditors to the United States, India’s exposure to the ever increasing US debt stands at $41 billion. In Indian terms, the money stands at Rs 1.83 lakh crores. This is much more the money owed by America to Australia and France.
Incidentally, among the foreign nations, China holds the maximum amount of US treasury securities and their amount of exposure stands at $1.15 trillion. The downgrading of rating of USA by Standard and Poor yesterday has also lead to thinking of Reserve Bank of India as they allow their funds to park in those countries which have AAA ratings.
Out of India’s $41 billion portfolio, most of the money belongs to RBI. Other Indian banks may also have some amount of exposure. Indian holding of US bonds has been growing in the recent years and during the last one year, the amount went up by $10 billion.
The top foreign creditors to USA are China, Japan ($912 billion), UK ( $346 billion), Brazil ($ 211 billion), Taiwan ($ 153 billion), Hong Kong (122 billion), Russia ($ 115 billion), Switzerland ($ 108 billion), Canada ($ 91 billion), Luxembourg ($ 68 billion), Germany ($ 61 billion), Thailand ($ 60 billion), Singapore ($ 57 billion) and India ($ 51 billion).
Countries which have less exposure to US treasuries than India are Ireland, Turkey, South Korea, Poland, Belgium, Mexico, Italy, France, Philippines, Sweden, Egypt, Malaysia and Australia.