Marseilles, September 30
Hinting that India cannot remain untouched by the financial turmoil in the US, Prime Minister Manmohan Singh has said the nation's capacity to finance development will be affected and exports compromised if major economies go into recession.

In an interview to leading French daily Le Figaro, Singh, who is on a two-day visit
to France, said the crisis affecting the developed countries at the moment, can
spread to the rest of the world and wanted India and China to be part of solution
finding exercise.

"We live in an interdependent world and the fate of all countries is related to the international financial system.

"Our value markets are opened to the world and, if they are affected, this will affect our capacity to finance our development," he said.

"If the financial crisis causes a recession in the main economies, this will
compromise our exports."

"The proposal of President Nicholas Sarkozy (for a summit to examine consequences of financial crisis) is fundamental," Singh said adding India was a potentially significant player but not a decisive actor.

"The main responsibility is that of developed countries, but India and China must take part in the solution," he said. — PTI