Investing in US government bonds will give you the opportunity to benefit from current high yields, potential capital gains in the future when interest rates move down, potential gains from INR depreciation, etc.
Latest data from the US Treasury Department showed that India, with holding worth USD 220.2 billion at the end of June this year, is the 11th largest holder of these securities while Japan has the most exposure at little over USD 1.277 trillion. India has been steadily hiking its exposure to the treasury securities since March when it was at USD 200 billion. In April, the holding rose to USD 208.7 billion and then to USD 215.8 billion at the end of May.