India fiscal health weak for quantitative easing, says Moody's

A quantitative easing (QE) programme by the Reserve Bank of India (RBI) may not go well with the country’s fundamentals, even as it bought Rs 3.13 trillion of debt from the secondary market in the last fiscal year and committed to Rs 1 trillion of bond purchase in the first quarter.

India is among the 11 emerging markets (EMs) that have jumped on the QE bandwagon. But it has one of the highest public debts and weakest debt affordability, global rating agency Moody’s said on Wednesday.

Chile, Colombia, Croatia, Ghana, Hungary, India, Indonesia, the Philippines, Poland, South Africa and Turkey have recently