Washington: India increased its holding of American government securities to U.S. $ 63.9 billion for the second straight month in November. The exposure, at the end of November last, is also the highest compared to the previous five months.
The second largest exposure is for Japan which held American government securities to the tune of $1.19 trillion in November. It is tad more than $1.17 trillion seen in October last year. Meanwhile, among the BRICS grouping, India has the second lowest exposure to these securities after South Africa.
In November, Brazil's holding rose marginally to U.S. 4 246.9 billion as compared to U.S. $ 246.7 billion in the previous month. Even though Russia's exposure is higher than India, the country trimmed its holdings by as much as U.S. $ 10 billion to US $ 139.9 billion at the end of November last. Within the BRICS bloc, only South Africa has the lowest exposure than India at $11.7 billion in November whereas the same was at $ 10.6 billion in October 2013.
With regard to the economy, the U.S. Federal Reserve in its Beige Book released on January 15 said that economic outlook is positive in most districts. According to the Beige Book, which offers a snap shot of economic activities in various districts, reports suggest economic activity continued to expand across most regions and sectors from late November through the end of the year.
"The economic outlook is positive in most districts, with some reports citing expectations of "more of the same" and some expecting a pickup in growth," it added. American economy, which is seeing slow recovery, recorded a GDP growth of 3.6 per cent in the third quarter of 2013.