Former Reserve Bank of India (RBI) Governor, Raghuram Rajan on Tuesday spoke to CNBC about the global trade war and tariffs imposed by the US on some of the major world economies.
“At this point the biggest risk is the combination of rising rates and some untoward action on trade,” Rajan told CNBC on the sidelines of a Nomura Conference.
Rajan raised concerns over the emanating trade war and its repercussions on the world economy.
“The great uncertainty is what happens with trade. If we have a trade conflagration in the next few months that could really hamper the global economy,” he added.
Talking about India, Rajan said, “I do think there is benefit in India having a good relationship with China and vice versa because these are two big countries that can do a lot of activity of economic activity together.