US, China clash to impair global trade vital for India's reopening: Rajan

Leading economist and former RBI governor warns of 'enormous bankruptcies' in US and Europe.

The conflict between America and China will escalate to hurt global trade that's "extremely important" for emerging markets like India and Brazil, former RBI Governor Raghuram Rajan has said.

Cautioning that there will be "deeply damaged firms" in the economy, Rajan said the post-pandemic recovery has to be accompanied by a process of repair.

"There's going to be enormous bankruptcies in the United States certainly and quite possibly in Europe also as we repair the economy, reallocate resources, restructure capital structures," he said on Thursday at the PanIIT USA virtual conference titled 'The New Global Economic Norm: Post Covid-19'.

"Certainly