US-China conflict to impair global trade which is vital for India's reopening: Raghuram Rajan
New York: As the US presidential election draws near, the conflict between America and China will escalate, impairing global trade which is "extremely important" for emerging markets like India and Brazil that are re-opening amidst COVID-19 pandemic, according to former RBI Governor Raghuram Rajan.
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 as we get closer to the US election, the conflict between the US and China is going to increase and that impairs global trade, which…is going to be extremely important going forward, especially for emerging markets like India, Brazil, Mexico, which are going to be significantly impaired by the virus and need some source of demand to pull them out as they start opening up again," he said.
The US election will be held on November 3. The contest is between incumbent President Donald Trump and Democratic presidential candidate Joe Biden.
美国大选将于逼毒11月3日举行。这场竞争在现任总统川特朗普和民 主党总统候选人拜登之间ω 展开。
"Global trade is going to be an important factor if they can jump on to it, whether it's trade in goods and services or trade in digital services, it's going to be very important and our countries desperately need an open world," Rajan said.
Rajan said that for countries like India and the US that are still battling the virus, the main issue right now is to contain the virus, even as he asserted that "unfortunately the spread has become significant enough that containment is going to be very difficult".
"This creates an enormous amount of uncertainty because businesses don't know whether there'll be fresh lockdowns and how difficult they will be. Some states in the US are talking about fresh lockdowns, some states in India are talking about lockdowns and have actually sort of implemented some of those right now," he said.
译文来源：三泰虎 /p/50414.html 译者：Jessica.Wu
as the us elections are nearing, the us and china war escalates which is important for India to make a demand on global trade market this will help us to get back to gdp at pre covid levels.
India Should focus on self improvement and self reliant.
Our economy was already shrinking here.. before the virus call... India's situation would be more aggravated by 4 months world-worst degree of draconian curfew/lockdown ..
A Lone Ranger
So far Rajan been generally right in his macro analysis of global trends.
Indian policy makers need to be open minded to all inputs from across the world.
Its economy is heading into negative growth.
Rajan is spot on here and one can only ignore his warnings at one’s own peril.
No one came out unscratched in any war throughout the history .
For the last so many years rajan has been giving his unwanted opinion and only the CON party bhakts of his like pappu are listening to him. What does this idiot want ?
A well known doomsayer. Ever presenting a gloomy picture with the hope he will be proved right sometime.
Who came first ? The corrupt or the corrupt people who corrupted the entire system ? !
Watch out guys ! This quack has started talking again !
BA Arts graduate replaced an IIT engineer.Chaiwala replaced an oxford PM.No doubt India is one of the poorest countries in the world.
For the past 6-7 years, RBI has systematically destroyed the balance sheets of most of the Indian banks -
Our Inda is probably going back to 1950s or 1960s condition. The difference this time is that we are more literate now than our grandparents and parents. A simple meal of gruel and last night's dhal curry or chappati and dhal was sufficient then. But this time our challenges are just more than that. The have-nots also want to live the same life-style as the haves. Therein lies the challenge for the people of India. This time a more learned political class should rise to lead India. This pandemic has given us an opportunity to re-start like Singapore, Malaysia, Taiwan and South Korea. Whether we make it like them or even aspire to be like them is in the hands of the youths of today.
Dear Editor, Our economy is different from US and Europe. Our Rural demand will be a great stimulus. Alarmist articles only add to gloom. Indian Economy has always been resilient post any Crisis which has impacted Global Economy be it Lehman bros. collapse, 9/11, Kargil etc.
Whether Rajan is still INDIAN citizen? or American citizen.?
It is known to entire world that he was chamcha of Chidambaram and UPA. Is present Govt in such a bad state to take advise from ex RBI Governor.
He is leftist by heart. I believe he is not correct always.
thank China for all the issues caused by covid