For the first time in ten months, India has cut down its investment in American debt securities which fell to $38.9 billion in July.
India's holding of US treasury securities marginally declined to $38.9 billion in July as compared to $39.3 billion in June.
Going by the data available with the US Treasury Department, India has decreased its investment in such securities for the first time since October 2008, when the same stood at $18.3 billion.
In September last year, when the collapse of then Wall Street titan Lehman Brothers pushed the global financial system into a tizzy, India's investment in US treasury securities had touched $20.3 billion.
On the other hand, neighbouring China continues to remain the largest foreign holder of these securities, with their investment reaching a whopping $800.5 billion in July.
Interestingly, China has hiked its investment that month from $776.4 billion in June.Except China, rest of the BRIC nations brought down their holding of US treasury securities in July.
Brazil cut its investment to $138.1 billion as compared to $139.8 billion in June while Russia decreased the same to $118 billion from $119.9 billion in the previous month.
After China, the largest foreign holder of US debt is Japan. The Asian economic giant invested $724.5 billion in these securities in July.
For the financial year ended September 30, America's budget deficit touched $1.4 trillion, accounting for 9.9 per cent of the national GDP.
The recession-hit has been grappling with one of the worst financial turmoils in decades, forcing the Federal government to come up with unprecedented measures to revive the country's economy.
