India hikes US govt securities holdings to $116.6 billion in Oct

Increasing its exposure, India held US government securities worth $116.6 billion in October amid the world's largest economy seeing stronger signs of recovery.

India hiked its holding by a little over $3 billion in October from $113.5 billion recorded in September.

In October, neighbouring China remained the largest holder with American government securities worth $1.255 trillion, followed by Japan with holdings valued at $1.149 trillion.

Latest data from the US Treasury Department showed that India owned securities worth $116.6 billion in October after trimming its holdings in the previous two months.

This is also the second highest level after the holdings touched $117 billion in June.

Among the BRIC grouping, India was at the third position after China and Brazil ($255 billion). Russia's holdings of the US government securities steeply declined to $82 billion in October.

In the three months ended September, the United States' real gross domestic product rose 2%.

"The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures, non-residential fixed investment, state and local government spending, residential fixed investment, and exports that were partly offset by a negative contribution from private inventory investment," the US Bureau of Economic Analysis said last week.