India's central bank had already been steadily reducing its purchase of US bonds and increasing its gold holdings even before Trump's tariff actions.

Before President Donald Trump imposed punitive tariffs on India, the Reserve Bank of India had already been steadily decreasing its purchases of US debt and increasing its holdings of gold, seeking to diversify its reserve assets. According to data from the US Treasury Department, India's investment in US debt in June fell to $227.4 billion, down from $235.3 billion in May, compared to around $242 billion in the same period last year. Other data shows that the Reserve Bank of India has also increased its holdings of gold. Last week, India's finance minister stated that the Reserve Bank of India is making "well-thought-out decisions" to achieve diversification of reserves, with the current size of India's reserves at approximately $694 billion, ranking fourth in the world.