US owes Rs 20000000000000 to India, even global superpowers rely on foreign loans for…, Japan and China also India’s debtors

India has invested nearly Rs. 20 lakh crore in US Treasury Bonds, a decision that plays a key role not just in supporting the American economy but also in strengthening India’s own financial stability. At first glance, it might seem surprising. After all, the United States has a national debt of more than USD 34 trillion. Yet, it continues to be the world’s most powerful economy. One of the main reasons behind this is the global trust in the U.S. dollar and the American government’s ability to repay its debts.

The US borrows money from other countries by issuing Treasury Bonds, Bills, and Securities. These are essentially loan documents that promise to pay back the borrowed money with interest over time. Many countries, including India, buy these bonds as a way to safely invest their foreign currency reserves.

China and Japan are among the biggest holders of US Treasury Bonds. Japan holds nearly USD 1 trillion worth, while China owns over USD 800 billion in American bonds. These investments offer them a steady return and help them manage their own economic strategies.

India, too, sees U.S. Treasury Bonds as a reliable investment. The interest earned from these bonds contributes to India’s foreign exchange reserves. These reserves are crucial for handling imports, stabilizing the rupee, and ensuring the country’s financial security.

Even though the U.S. pays millions of dollars in interest every day, the strength of the dollar in the global economy keeps its borrowing power intact. Countries across the world continue to see U.S. bonds as one of the safest places to invest their money.

In return, India earns a fixed income from these investments, which is both low-risk and helpful in building long-term economic resilience. It’s a financial strategy that quietly but effectively contributes to India’s global economic standing.

So while India’s investment in U.S. Treasury Bonds might not make daily headlines, it plays a silent and steady role in shaping the country’s economic future.

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