Global crisis to affect our ability to finance development: PM

Marseilles, Sep 30 (PTI) Hinting that India cannot remain
untouched by the financial turmoil in the U.S., 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.

Asked if New Delhi preferred bilateral agreements like
the free exchange agreement with the European Union, rather
than multilateral negotiations within the framework of W.T.O.,
the Prime Minister said the agreement with E.U. was not
substitute for W.T.O. negotiations and it was complimentary.

"With other countries we are working towards a success of
the Doha Agreements. The free exchange agreement with the E.U.
is not a substitute for Doha. It is complementary. I would
call this 'Doha plus'," Singh said.

Prime Minister said bilateral trade with France had
increased but was below its potential.

"During the visit to India of President Sarkozy, in
January 2008, we have decided to double the amount of
exchanges by 2012," he said.

In order to maintain a nine percent yearly growth, India
has to undertake major investments to improve its
infrastructure which would provide French companies an
opportunity to participate.