India’s Raghuram Rajan says capitalism is under serious threat

Former Indian central bank governor Raghuram Rajan has warned that capitalism may be under serious threat as it has stopped providing for the masses.

Mr Rajan said government cannot afford to ignore social inequality when considering the economy.

Mr Rajan led India’s central bank and was also a former chief economist at the International Monetary Fund (IMF).

He has been tipped by some as a possible successor to take over from Mark Carney as governor of the bank of England.