India need not worry from Glencore troubles, says Raghuram Rajan

Reserve Bank Governor Raghuram Rajan on Tuesday said the country has nothing to fear from the troubles being faced by mining giant Glencore due to corrections in the commodity prices.

"I doubt if there is any significant risk stemming from them," he said during the post-policy interaction, when asked to comment about any risk which India faces on the issue.

"It is one commodity company among many companies that do similar activities. That they are in distress doesn't mean they stop doing activities. I don't think we need to worry too much about the effects of Glencore," he added.

There has been an erosion in the value of the Swiss mining company's stock, following concerns raised by analysts due to a steep correction in the commodity prices.

The company's stock corrected by 30% on Monday.

However, Deputy Governor S S Mundra on Tuesday questioned the real reasons behind the correction, saying it is not the correction in commodity prices alone that has hurt it.

"It is stemming more from their ownership of the commodity assets than the commodity prices," he said at the same conference.