Newly appointed US Ambassador to India Sergio Gor met with Reserve Bank of India (RBI) Governor Sanjay Malhotra on Saturday. In a post on X, Gor said that he enjoyed meeting Malhotra, adding that they “discussed areas of increased cooperation, including new state-of-the-art U.S. technology.”
This high-level engagement comes after India significantly reduced its holdings in US Treasury bonds throughout 2025, a diversification strategy that has drawn global attention. According to Bloomberg data, the country’s investments in US government bonds dropped by approximately 21% from October 31, 2024, to October 31, 2025, falling from $241.4 billion to $190.7 billion.
Very much enjoyed meeting @RBI Governor Sanjay Malhotra. We discussed areas of increased cooperation, including new state-of-the-art U.S. technology. pic.twitter.com/07b2u74w74
— Ambassador Sergio Gor (@USAmbIndia) January 17, 2026
This marks the first annual decline in four years and represents a sell-off of over $50 billion, part of a broader push toward reserve diversification amid global uncertainties. Notably, India is not alone in adopting this strategy; several major economies, including China and other BRICS members, are reducing their holdings of US bonds, replacing them with other currencies and gold.
China has been steadily reducing its holdings of U.S. Treasury securities over the past several years as part of foreign reserve diversification. Its total has declined significantly from peaks above $1 trillion to around $680 billion.
India remains one of the top holders of US Treasuries globally, ranking sixth, but the reduction aligns with similar moves by other BRICS nations like China and Brazil, which collectively offloaded $28.8 billion in US debt in October 2025 alone.
The US Ambassador meeting the governor has sparked speculation about potential discussions on the issue and bilateral economic relations. India and USA are engaged in talked over a trade agreement, which have been delayed due to disagreement on various issues.
