The Reserve Bank of India (RBI) has made a significant strategic shift in its foreign exchange reserve management, reducing its holdings in US Treasury securities by a notable 21% between October 31, 2024, and October 31, 2025. This marks the first annual decline in India's US Treasury investments in four years, signaling a broader reassessment of asset allocation amidst evolving global economic and geopolitical dynamics. The total holdings decreased from approximately $241.4 billion to $190.7 billion during this period, representing a reduction of $50.7 billion. This decision is primarily driven by a concerted effort to diversify India's foreign exchange reserves, aiming to reduce over-reliance on dollar-denominated assets. Experts suggest that the move is not merely a response to bond yields but a strategic repositioning to enhance reserve resilience, especially given concerns over the 'weaponization of reserves' as witnessed in recent geopolitical events. Concurrently, the RBI has substantially increased its gold reserves. Data indicates that gold holdings rose to 880.18 metric tonnes by the end of October 2025, up from 866.8 metric tonnes a year earlier. The share of gold in India's total foreign exchange reserves consequently increased to 13.6% by September 2025, from 9.3% in the previous year. India is not alone in this trend; several other major economies, including China, Brazil, Hong Kong, and Saudi Arabia, have also trimmed their US Treasury holdings year-on-year, reflecting a wider global shift among central banks to rebalance their reserve portfolios. Conversely, countries like the UK, Belgium, and Japan increased their exposure to US Treasuries. This strategic recalibration by the RBI underscores a proactive approach to safeguard India's financial stability and adapt to an increasingly unpredictable international economic landscape.