Global crisis will impact India: PM

Hinting that India cannot be untouched by the financial turmoil in the US, Prime Minister Manmohan Singh said the nation’s capacity to finance development would be affected and exports compromised if major economies went into recession.

In an interview to leading French daily Le Figaro, Singh, who is on a two-day visit to France, said he wanted India and China to be part of solution-finding exercise to the global financial turmoil.

“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.

 

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